With a moderate pace of price increases and a gradual recovery in the construction sector, the Israeli real estate market is showing signs of stability.
However, factors such as high inflation, interest rates and the recovery of construction employment will continue to shape trends in the coming months, more than a year after the start of the conflict with Hamas, which had negative effects on the sector.
Following the impacts of the war with Hamas and constraints in the construction sector, the latest data indicate that housing prices experienced a slight decline between August and September, while sales and rental activity maintained a steady pace.
According to the Central Bureau of Statistics, in the third quarter of 2024, the average price of an apartment was NIS 2,242,900, which represents a 3.7% drop from the previous quarter. The regions with the largest decreases were the central district and Jerusalem, while in Haifa and the north prices increased.
The main factors contributing to the stabilization are the construction sector, which is beginning to recover, and the interest rate, which remains high at 4.5%.