Israel Housing Prices Show Mixed Trends Across Major Cities in H1 2026

The Central Bureau of Statistics released updated housing price data, revealing a mixed trend across major cities during the first half of 2026. While the national average apartment price rose to approximately 2.392 million shekels—representing a 3.9% increase compared to the same period in 2025—city-level analysis shows diverging trajectories.

City-by-City Price Trends

Tel Aviv remains the most expensive city in the country, recording an average apartment price of approximately 4.45 million shekels in H1 2026, a 6.6% jump from 4.18 million shekels in H1 2025. Ashdod also saw significant growth, with average prices climbing 6.1% to roughly 2.172 million shekels. Conversely, cities such as Bat Yam, Hadera, Ashkelon, Herzliya, Ramat Gan, and Petah Tikva experienced slight declines in average prices compared to the previous year.

Herzliya, the second most expensive city in the index, recorded an average price of 3.782 million shekels, marking a 0.9% decrease. Local real estate experts attribute the shift to more selective buyers who are highly sensitive to financing costs and unwilling to pay inflated prices.

Surge in Small Apartments and Mortgages

Data categorized by apartment size highlights that the sharpest price increases occurred in smaller units. The national average price for 1-2 room apartments surged by roughly 8.3% to 1.720 million shekels. Meanwhile, Bank of Israel data showed that the total volume of mortgages taken in August reached 10.899 billion shekels. Cumulative mortgage volume since the beginning of 2026 hit 79.6 billion shekels, reflecting a substantial 13.8% increase compared to the same period last year.

"The mortgage market continues to be strong and stable, operating differently from the physical real estate market," mortgage advisory representatives noted, pointing to past financing deals maturing into actual loans.