Real Estate

The Israeli real estate market is operating in two segments at once.

The aggregate is moderating. According to broker reporting and CBS data published by Times of Israel, Tel Aviv transaction volumes dropped through 2024 and 2025. Higher interest rates and buyer hesitation extended days-on-market to 50–60 days. The CBS Dwelling Price Index recorded eight consecutive months of decline through late 2025 before a partial post-ceasefire rebound.

The trophy tier moved differently. Boutique developments and luxury towers command ₪100,000–₪200,000+ per square meter, against a mainstream market operating at ₪55,000–₪80,000 per square meter.

The buyer profile is widening. In April 2026, American activist investor Bill Ackman purchased a luxury apartment in Rothschild 10 for an estimated NIS 70 million, per Ynet. The transaction extended Ackman's prior 2024 acquisition of a roughly 5% stake in the Tel Aviv Stock Exchange.

Foreign buyers are the structural variable. Per Marc Lugassy of Barnes Israel, nearly 60% of the firm's 2025 luxury transactions involved foreign residents — broker-disclosed share, not data from the official transaction registry.

Jerusalem is a separate story. CBS data published by Times of Israel reported Jerusalem prices up 9.6% in the twelve months ending February 2026 — the highest gain of any region.