Analysis: Sharp Decline in Second-Hand Housing Prices in Tel Aviv's Quarters 3 and 4
A study by real estate appraiser Dr. Asaf Gastfreund reveals that since early 2023, second-hand housing prices in Quarter 3 have fallen by over 20%, with Quarter 4 seeing a decline of nearly 8%. In real terms, accounting for inflation, the erosion of value is even more significant.
The decline in the housing market has been ongoing for some time, with the Central Bureau of Statistics' housing price index for May recording a 1% decrease—a drop not seen in eight years. A new study by real estate appraiser Dr. Asaf Gastfreund shows that in two central Tel Aviv-Yafo neighborhoods, second-hand apartment prices have decreased significantly over the past three and a half years.
The review examined 371 transactions for apartments older than five years, carried out between January 2023 and mid-July 2026 in Quarter 4 and Quarter 3 (Lev Tel Aviv). The analysis utilizes median prices per square meter to filter out outlier transactions and provide a more accurate reflection of market trends.
A 23.3% Decrease Since Early 2023
"Unlike indices based on new apartment transactions, which often include hidden benefits that distort reported prices, this research is based solely on second-hand transactions where the reported price reflects the actual amount paid," explains Dr. Gastfreund. The median was chosen as the standard metric, aligning with the Central Bureau of Statistics' methodology.
The data segmentation by apartment size reveals:
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In Quarter 4, the median price for 40–60 sqm apartments dropped by 5.8% (from 65,300 NIS to 61,500 NIS per sqm).
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The 60–80 sqm segment in Quarter 4 saw the most significant decline, falling 14.8% (from 66,900 NIS to 56,962 NIS per sqm).
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In Quarter 3 (Lev Tel Aviv), prices for 40–60 sqm apartments fell by 15.8%, while 100–120 sqm units saw a 27.5% decrease.
Ultimately, since early 2023, Quarter 3 has experienced a 23.3% decline in median price per sqm, while Quarter 4 has seen a 7.75% drop. "Both neighborhoods point in the same direction—a price decrease—though with varying intensity," notes Dr. Gastfreund. When adjusted for inflation, the erosion of value is even more pronounced. The only exception is the very small apartment segment (20–40 sqm), which has maintained relative stability.
