Over the weekend, the Central Bureau of Statistics published its latest Housing Price Index, showing a 0.3% drop in home prices during August–September 2025. The index for new homes recorded a sharper decline of 0.8%, while the annual index showed only a slight increase of 0.5%—marking a significant slowdown. This is the seventh consecutive monthly decline in housing prices across Israel.
As it does each quarter, Ynet and Mamon analyzed the CBS data, focusing on average nationwide apartment prices in Israel’s 18 largest cities—each with a population of 100,000 or more—to track local price increases and decreases. This analysis covers the third quarter of 2025. The figures reflect an average based on both new and secondhand apartments, across all room sizes (from one to six rooms).
According to the data, the average home price in Israel between July and September was approximately NIS 2.21 million. This marks a 1.9% decrease compared to the previous quarter (about NIS 2.25 million) and a 2.5% drop compared to the third quarter of 2024 (approximately NIS 2.27 million).
The highest average home price was recorded in the Tel Aviv District, at around NIS 3.01 million, while the lowest was in the Northern District, at roughly NIS 1.56 million. Year-over-year price increases in the third quarter of 2025 were recorded in the Northern District (9.5%), Jerusalem (8%), Haifa (5.1%) and the Southern District (1.7%). By contrast, average prices fell in the Tel Aviv District (7.6%) and the Central District (3.8%).
Tel Aviv still leads the pack
Tel Aviv remains the most expensive city in Israel, with an average apartment price of NIS 3.68 million. This marks a 13% drop compared to the same quarter last year (Q3 2024) and a 12% decrease from the previous quarter (Q2 2025).
The priciest apartments are 4.5- to 5-room units in Tel Aviv, averaging NIS 5.18 million. But compared to the first quarter of the year, when similar apartments sold for an average of NIS 7.04 million, this represents a sharp 26% decline in just two quarters. The city's most "affordable" units are its smallest—1- to 2-room apartments—averaging NIS 2.98 million. These prices have actually risen compared to previous quarters.
Ohad Danus Photo: Shahar ShiraziOhad Danus, former chair of the Chamber of Real Estate Appraisers, cautioned that “it's important to remember that the Central Bureau of Statistics does not apply quality adjustments to its data. For example, Q3 reflects just 18 transactions, while Q1 included 103. Under such circumstances, there's a clear potential for significant distortion in the average figures, especially when outlier deals are factored in. Nevertheless, it's clear that there's been a marked slowdown in the sale of large apartments in Tel Aviv since the start of the year, and that slowdown has certainly driven prices down.”
Herzliya continues to hold second place among Israel’s most expensive cities, not far behind Tel Aviv, with an average apartment price of approximately NIS 3.66 million in Q3 2025. This represents a negligible 0.05% drop from the previous quarter, but a 4.2% decline compared to the same quarter last year.
Contrary to the broader trend, prices in Jerusalem—now ranked third and overtaking Ramat Gan—have risen. The average home price in the capital reached NIS 3.12 million in Q3, a 9.3% year-over-year increase and a 2.7% gain from the previous quarter.
Ramat Gan now ranks fourth, with an average home price below NIS 3 million. In Q3, the average stood at approximately NIS 2.92 million—down 6.2% from the previous quarter and 5.7% from the same period last year.
In fifth place is Kfar Saba, where the average home price was about NIS 2.77 million in Q3—a quarterly drop of 6.2% and a year-over-year decline of 9.3%.
Rishon Lezion placed sixth, with an average home price of roughly NIS 2.57 million in Q3—down 2% from Q2 and 5.7% compared to the third quarter of 2024. Next in the ranking are Netanya (NIS 2.568 million) and Petah Tikva (NIS 2.567 million). While prices in Netanya continued to decline, Petah Tikva saw a quarterly increase of about 1.2%, though prices there are still down 3.7% from the same period last year.
Bat Yam sees sharp price spike
Bat Yam ranks ninth on the list, defying the national trend with significant quarterly and annual price increases. The average apartment price in the city rose to approximately NIS 2.47 million—an 8.3% jump from the second quarter of 2025 and a 4.2% increase year over year.
In tenth place is Rehovot, where the average home price stood at around NIS 2.44 million—a quarterly drop of 4.8% and a 3% decrease compared to the same period last year.
Next on the list is Beit Shemesh, which also bucked the general trend with rising prices. The city’s average apartment price reached about NIS 2.435 million, reflecting a 3% increase from the previous quarter and a 6.3% jump from the third quarter of 2024.
Bnei Brak, ranked 12th, also saw prices climb. The average apartment price there in Q3 was approximately NIS 2.39 million—a 1.7% quarterly increase and a modest 0.5% rise year over year.
Holon followed with an average price of roughly NIS 2.28 million—up about 1% from the previous quarter, though down 0.3% compared to the same quarter last year.
Ashdod recorded an average home price of around NIS 2.15 million, marking a 6% rise from Q2 and nearly 1% higher than Q3 2024.
In Hadera, the average apartment price was about NIS 2.03 million, with slight decreases both quarterly and annually.
The lowest average prices—below NIS 2 million—were once again found in just three cities. In Be'er Sheva, the Q3 average stood at roughly NIS 1.22 million. In Ashkelon, the average reached NIS 1.75 million. In Haifa, it was about NIS 1.84 million. All three cities recorded both quarterly and annual increases.
Looking for apartments under NIS 1 million? They're only available in three cities, and only for the smallest units. In Haifa, 1- to 2-room apartments average about NIS 991,000; in Ashkelon, around NIS 835,000; and in Be'er Sheva, about NIS 652,000 for 1- to 2-room units and roughly NIS 875,000 for 2.5- to 3-room apartments.