Real Estate Appraiser: Apartment Prices Rose by Nearly 1%
A new review by real estate appraiser Ohad Danus for the second quarter of 2026 reveals a recovery in housing prices, with increases in 8 out of 17 cities examined. Where are prices falling and what is driving this trend?
The Central Bureau of Statistics reported at the end of the week that housing prices are returning to growth after a long period of decline. The price increases are primarily reflected in new apartments, which has a logical explanation: some second-hand apartments lack a protected space (MAMAD), causing prices there to fall at a faster rate.
According to a review conducted by real estate appraiser Ohad Danus, an increase of nearly 1% was observed in the second quarter of 2026. He found a 0.9% nominal increase in the average price of apartments. His findings are supported by Central Bureau of Statistics data released on Friday, which indicate that the average apartment price has risen to over 2.4 million shekels. During the same period, the general consumer price index (excluding housing) rose by 1.3%.
Danus's review excluded apartments of five rooms or more due to the variance in attached areas such as roofs and courtyards, as well as differences in construction and finish levels. Small apartments of three rooms or less were also excluded due to a scarcity of transactions. The analysis focused on 4-room apartments.
After filtering, 2,842 transactions were analyzed across 17 cities. In the second quarter, the number of relevant transactions increased by approximately 14% compared to the first quarter of 2026 and by about 20% compared to the same quarter last year.
The results indicate that in the second quarter of 2026, average apartment prices rose in 8 out of 17 cities compared to the previous quarter. In 2 cities, there was no change, while 7 cities saw a decrease.
"In the second quarter of 2026, apartment prices reflect a slight increase compared to the previous quarter. Compared to the corresponding quarter last year, an average decrease of 1% was recorded," says Danus.
He noted that an unusual annual price decrease was recorded in Modiin and Ramat Gan, despite an increase in the number of transactions in those areas.
"The cooling in the housing market is shifting toward a warming trend, as the expectation for the recent interest rate reduction was a central component, despite continued uncertainty in the political and security arenas. On the map of large cities, it is evident that Haifa continues to show stability alongside price increases," he adds.
It should be recalled that the volume of mortgages taken by the public in June 2026 stood at approximately 11.05 billion shekels, about 24% higher than the previous year.
