Apartment prices in Tel Aviv fell by more than 20 percent

Apartment prices in Tel Aviv have fallen by more than 20 percent on average over the past few years amid military operations and political instability in Israel. At the same time, housing rents have continued to rise, Eitan Yaakobi, a real estate agent in Tel Aviv, told RIA Novosti.

According to him, demand for housing in the city is now significantly lower than the peak level recorded in 2021. After October 7, 2023, many buyers either canceled their transactions or postponed their property purchases.

The price decline has affected both new construction and the secondary market. In 2026, the cost of a square meter of housing on Tel Aviv’s secondary market is approximately 40,000–45,000 shekels, or $13,300–$14,800. In new buildings, prices reach 50,000–55,000 shekels, or $16,500–$18,100 per square meter.

Yaakobi noted that the price drop began even before the situation escalated in October 2023. Among the reasons he cited were rising mortgage rates and a decline in the investment attractiveness of real estate transactions. Meanwhile, rental costs in Tel Aviv have increased slightly over the past few years.