Real Estate Market: 4-Room Apartment Requires 2.3 Million Shekels in Down Payment
An analysis of CBS data reveals that the average price of a 4-room apartment in central Israel remains out of reach for many. With current prices, particularly in Tel Aviv, the required down payment makes purchasing a home an extremely difficult challenge.
The average price of an apartment in Israel in the first quarter of 2026 stands at 2.332 million shekels, according to data from the Central Bureau of Statistics (CBS). For comparison, the average price was 2.33 million shekels last year and 2.34 million shekels in 2024. In other words, apartment prices have remained virtually unchanged for nearly two years.
In 2024, about 81,200 transactions were conducted in Israel, while in 2025, fewer than 65,000 transactions were recorded. If the current pace continues as it did in the first quarter of this year, with just over 13,000 apartments sold, 2026 is shaping up to be the weakest year since the beginning of the decade, alongside 2023. However, it must be remembered that the first quarter was affected by the war against Iran, which lasted about a month. Therefore, we must wait for the second-quarter data to be published to fully understand the state of the market.
Analysis of Housing Prices in Central Cities
Using an analysis of CBS data, we examined housing prices for 4-room apartments in various cities in the center of the country. This allows us to see if the public can still afford to buy an apartment in the "second line" from Tel Aviv and how large the gaps are between the metropolis and surrounding cities.
It is important to note that in the CBS definition, 3.5-room and 4-room apartments are grouped together. This is the standard segment that young couples look for at the beginning of their journey. The size of these apartments varies from 90–100 to 110–120 square meters depending on the city and construction era. Furthermore, the market mix affects the average price; the share of second-hand homes varies by city, and a higher proportion of new projects typically drives up the average cost.
As the data shows, the price of a 4-room apartment in Tel Aviv reaches 5.332 million shekels, a sum significantly higher than in other cities we checked. Herzliya ranks second with an average price of 3.8 million shekels, followed by Ramat Gan at just over 3.2 million shekels. In Bat Yam, the price is around 2.7 million shekels, while in Petah Tikva, it stands at close to 2.4 million shekels.
Financial Barriers for Young Couples
Why did we focus on 4-room apartments? The average price in Israel is about 2.3 million shekels. When taking out a mortgage, a down payment of at least 30% is required. If a couple arrives at the bank with a down payment of half a million shekels, they cannot afford an average apartment, forcing them to seek additional capital and exposing themselves to financial risks.
In Tel Aviv, the situation is even more difficult: with an average price of 5.332 million shekels, the required down payment exceeds 1.5 million shekels. Moreover, due to the high price of the property, it is very difficult for a young couple to secure a mortgage of more than 3 million shekels. Under these conditions, buyers must provide a down payment of 2.332 million shekels, with monthly mortgage payments reaching about 15,000 shekels.
