Real estate in Israel in 2025

Israel in 2025 continues to be a country with one of the most dynamic and expensive real estate markets in the world. The increase in housing prices, which began back in the 2000s, does not stop, despite the government’s efforts to increase the supply of affordable housing. The focus is the issue of property ownership and rent, which directly affects the quality of life of the Israelis. In this article, we study how the housing market forms a social structure, and why for many " Homeless " Status means not only the lack of a roof over your head, but also the inability to acquire your own housing.

In February 2025, the real estate market demonstrates steady growth, heated by high demand in large cities, such as Tel Aviv, Jerusalem and Haifa, as well as the development of infrastructure on the periphery. We will analyze the data, trends and forecasts to give a complete picture of how the Israelites solve their housing issues in modern conditions.

It is interesting that despite the high prices, Israel retains a relatively low level of homelessness in comparison with other developed countries. This may be due to strong family support and social programs, although the exact numbers remain the subject of disputes. However, our goal is not homeless in the traditional sense, but those who live in their homes or rent housing, and how this reflects the country's economic reality.

How many people own housing, and how much they rent

Understanding the structure of ownership and rental of housing in Israel is the key to the analysis of the real estate market. Let's analyze the latest data and forecasts for 2025.

Statistics of ownership and lease

According to Trading Economics for 2021, the level of housing in Israel was 62.7%, and 37.3% of households rented housing. By 2025, taking into account the growth in real estate and inflation prices, experts predict a slight decrease in the share of owners to 60-61%, and tenants growth to 39-40%. This is due to the fact that young families, new immigrants and people with low incomes are increasingly choosing a lease as a more affordable option.

The average housing price in the first quarter of 2024 was about 2.23 million ILS (approximately 600,000 USD), and the average monthly household income was about 13,000 ILS (3,500 USD). This means that buying a house requires savings or mortgages for 20-30 years, which is not affordable for everyone. Rent, in turn, varies from 3,500 to 7,000 ils per month, depending on the region.

Regional differences

In large cities such as Tel Aviv, the share of tenants reaches 50-55%, which is explained by the high cost of real estate and active business life. For example, in Tel Aviv, the average price of an apartment in 2025 reaches 4.5 million ILS, and rent-about 7,000 ILS per month. In Jerusalem, the share of owners is slightly higher (about 60%), but rent is also popular among students and young specialists.

on the periphery, for example, in Beer-Sheva or Ashkelon, up to 70% of households own housing, since prices here are much lower-about 1.4-1.6 million ILS per apartment. These differences reflect the country's economic geography: the center attracts tenants, and the periphery - owners.

It is interesting that in small cities, such as non-Nanitia or Rishon-le-Council, there is an increase in the number of tenants due to the influx of young families who are looking for an accessibility and proximity to the center.

Why this happens: the reasons for the distribution

The distribution between owners and tenants in Israel is not accidental. Let's analyze the key causes of this phenomenon.

Economic factors

The main reason is the high cost of real estate. In 2025, the average price per square meter in Tel Aviv reaches 51,000 ILS (about 13,700 USD), according to Properstar. For comparison, the average family income per month is about 13,000 ILS, which makes the purchase of housing almost inaccessible without significant accumulations or helping parents.

Mortgage is a popular tool, but the initial contribution (30-40% of the cost) and high interest rates (about 4-5% per annum in 2025) scare away many. As a result, the rental is becoming a more flexible decision, especially for those who do not want to bind themselves to long -term obligations.

population growth (1.8% per year) and limited housing construction in the central areas also increase demand, which pushes up prices up. At the same time, economic instability caused by global crises and local conflicts reduces the purchasing power of the middle class.

Social and cultural aspects

Housing in Israel is historically considered a symbol of success and stability. Many families seek to buy a house or apartment, even if it requires financial assistance from relatives. However, the young generation (20-35 years) is increasingly choosing mobility and refuses this tradition, preferring lease for the sake of freedom of movement and career.

Immigration also plays a role. New repatriates arriving in Israel often start with rent, as they do not have sufficient funds for the purchase. For example, in the 1990s, a wave of immigration from the former USSR increased the number of tenants in Tel Aviv, and this trend remains.

For many, renting is not only an economic choice, but also a way to avoid " Homeless " Status in the form of a lack of own housing. Culturally this is perceived as a temporary solution, although for some it becomes constant.

Popular types of real estate in 2025

In 2025, the Israeli real estate market demonstrates clear preferences in the types of housing. Consider the most popular options.

Apartment: Demand leader

apartments in multi -storey buildings remain the most popular type of real estate, making up about 60% of all transactions. 2-3-room apartments with an area of ​​60-100 m² in central cities such as Tel Aviv, Jerusalem and Haifa are especially in demand. They are ideal for young families and single professionals.

In Tel Aviv, demand is focused on apartments with views of the sea or near business centers. In 2025, their average cost reaches 4.5-5 million ILS, which makes them an object of investment for wealthy buyers.

at home and cottages

Private houses and cottages are popular in suburbs and small cities, such as Rishon-Le-Council, Ashkelon and Modin. They make up about 25% of the market and attract families with children due to the presence of their own site and silence. The average price of the house in Ashkelon is about 2 million ILS, which is much lower than in the center.

In 2025, there is an increase in interest in houses with energy -efficient technologies such as solar panels, which reflects global ecological trends.

New trends: office housing

with the development of remote work (about 30% of workers in Israel work from the house in 2025) the demand for apartments with an additional office for the office grew by 15%. Such objects are popular in Haifa and Netania, where prices are lower than in Tel Aviv, but the infrastructure is developed.

Real estate prices in the cities of Israel

Housing prices in Israel in 2025 vary greatly depending on the region. Consider the main cities and their features.

Tel Aviv: Financial Center

Tel Aviv remains the most expensive city in Israel. The average price of the apartment here is 4.5 million ILS, and rent is 7,000 ils per month. For a square meter in the city center, up to 51,000 ILS are asked. Demand is focused on modern apartments in areas such as Rothschild and Florentine.

Jerusalem and other major cities

In Jerusalem, prices are lower - about 2.8 million ILS per apartment, rent - 5,500 ILS. The city attracts religious families and investors. Haifa offers more affordable options: 2 million ILS for the apartment and 4,200 ILS for rent, which makes it popular among students and workers of the technological sector.

Periphery: available options

on the periphery, for example in Beer-Shev, the average price of the apartment is 1.4 million ILS, rent-3,600 ILS. Ashkelon with prices of about 1.6 million ILS and renting 3 900 ILS attracts families looking for affordable housing near the sea.

The future of the housing market

Israeli real estate market in 2025 continues to be complex and multifaceted. Housing is the goal for many, but high prices and economic challenges make rent more and more popular. The future depends on whether the state can increase the supply of affordable housing and reduce pressure on the market. For those who want to study the possibilities of buying or lease deeper, we recommend visiting Homeless "Section with current sentences.