Israel: Fewer Buyers, Yet Prices Keep Rising — What’s Going On?

Israel’s real estate market has been pretty puzzling lately. On one hand, high interest rates and ongoing economic uncertainty have cooled off many investors and first-time buyers. Fewer deals, a clear slowdown — you can feel it.

Yet apartment prices keep going up! In the last six months, the median price of investment apartments jumped by 14%, reaching around 2.3 million shekels.

How come? Because the demand has shifted to quality. People are looking for better-located, more resilient properties that feel safer. Even if fewer transactions happen, real estate is still seen as a safe haven.

The big question is: what about young families? How will they be able to get into the market in these conditions? That’s a story worth following in the months ahead.