In August 2024, the Israeli real estate market displayed signs of moderate growth. Housing prices continued to rise, although the pace slightly slowed compared to previous months. Demand remains high, particularly in Jerusalem, Tel Aviv, and Haifa, despite a 4.7% year-over-year price increase. Investors, while still active, are somewhat slowing their purchases, influenced by a persistent labor shortage in the construction sector, which further exacerbates the housing shortage.
Property sales increased by 15% compared to the previous year, but this growth rate is the lowest since January 2024. Apartments in Tel Aviv, Jerusalem, and Haifa continue to attract attention, although prices there are among the highest in the country. Renting remains a popular option, with rates ranging from 1,750 shekels in Haifa to 10,000 shekels in Tel Aviv.
Potential buyers and investors are advised to explore opportunities outside major cities for more affordable options while keeping an eye on legislative and fiscal developments that could impact long-term returns. Sellers should take advantage of the ongoing demand to maximize their gains while staying vigilant in case of a potential future market slowdown.
