Yad2 Index Reveals Price Drops Per Square Meter in Most Israeli Cities
Yad2 data reveals that 16 out of 20 city and apartment size comparisons recorded a price drop per square meter over the past year, signaling a broader housing market correction.
Recent data from the Central Bureau of Statistics points to a distinct shift in apartment prices since the beginning of the year, moving from slight increases to a continuous downward trend. New figures released by Yad2 to N12 clearly illustrate how these changes are unfolding across various cities and property types. Out of 20 city and apartment-size comparisons examined by the Yad2 Pulse Index, 16 recorded a decline in price per square meter over the past year, while only 4 registered an increase.
Price Trends in 4-Room Apartments
In larger apartments ranging from 91 to 120 square meters—typically representing 4-room apartments, the most common property type in Israel—price drops were recorded in 8 out of the 10 cities analyzed. Ashdod led the trend with a decrease of approximately 4.1%, dropping from about 18,300 NIS per square meter to around 17,600 NIS. Haifa followed with a 3.4% decline.
The regional breakdown for 4-room apartments shows widespread decreases:
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Ashdod: down 4.1%
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Haifa: down 3.4%
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Beersheba: down 2.6%
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Herzliya: down 2.4%
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Jerusalem: down 1.6%
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Rishon LeZion: down 1.6%
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Hadera: down 1.1%
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Tel Aviv: down 0.9%
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Lod: up 0.8%
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Netanya: up 0.6%
Price Trends in 3-Room Apartments and Market Outlook
For medium-sized apartments ranging from 61 to 90 square meters, typical of 3-room units, the sharpest drop was registered in Rishon LeZion, where the price per square meter fell by roughly 4.7% from about 26,100 NIS to 24,800 NIS. Tel Aviv also saw a significant decrease of 3.8%, sliding from roughly 49,300 NIS to 47,500 NIS per square meter, though it remains the most expensive city among those surveyed.
"The data points to a clear trend of declining prices in the housing market over the past year, which is evident across a variety of cities and diverse apartment types," noted Sima Azulay, CEO of Yad2 Second-Hand Real Estate. "For home buyers, this means there is now greater scope to examine options, compare properties, and negotiate on price."
Interestingly, some cities showed opposite trends between the two apartment sizes. In Haifa and Jerusalem, prices for medium-sized apartments rose while large apartments declined. Conversely, in Netanya, prices for medium-sized units dropped while large apartments experienced a slight increase. Yad2 emphasizes that these price fluctuations are not related to the presence of a reinforced security room (mamad), but reflect actual price per square meter based on supply and demand in each size category.
