Overview of Housing: Sales and Rentals in Israel for May 2024

In May 2024, Israel’s housing market continued to exhibit the complexity and dynamism that has characterized it in recent years. This report offers a comprehensive overview of the sales and rental landscape, exploring key trends, regional variations, and price movements that have defined the market during this period.

Housing Sales in May 2024

The sales segment of the housing market showed varied trends across different regions of Israel. The demand for housing remains robust, driven by a combination of low-interest rates, significant demand from overseas buyers, and governmental incentives aimed at stimulating the market.

Key Trends in Housing Sales

One of the key trends observed in May 2024 was the continued rise in prices in major cities such as Tel Aviv and Jerusalem. In Tel Aviv, average property prices saw an increase of 7% compared to the same period last year. This hike is attributed to strong demand and limited supply in desirable neighborhoods. Conversely, peripheral areas such as the Negev and Galilee regions witnessed a more modest growth in prices, largely due to governmental efforts to promote these areas as viable living locations.

New development projects have also been a significant part of the landscape, with a government focus on increasing the availability of affordable housing. These projects are mostly concentrated in the central and northern parts of Israel and have contributed to a slight easing of prices in these regions.

Housing Rentals in May 2024

The rental market in Israel has shown resilience, with steady growth in rental prices across most regions. The high cost of home ownership continues to drive demand in the rental sector, with particularly sharp increases observed in metropolitan centers.

Rental Price Trends

In cities like Tel Aviv, rental costs have surged by approximately 5% compared to May 2023. The high demand for rentals in urban areas, coupled with limited new construction, has kept rental prices on an upward trajectory. Smaller cities and towns have also experienced an increase in rental rates, though to a lesser extent, supported by the migration of some population from high-cost areas to more affordable locales.

Impact of Governmental Policies

The Israeli government has continued to implement a range of policies aimed at controlling the sharp rise in both house prices and rents. These include subsidies for first-time home buyers, restrictions on the purchase of multiple homes by individual investors, and incentives for developers to build more rental housing. The effectiveness of these measures, however, remains a subject of debate among experts.

Regional Variations

The disparity between different regions in Israel continues to be pronounced. In high-demand areas like the Gush Dan and Jerusalem districts, prices are far higher than in outlying areas such as the Northern and Southern districts. This polarization highlights the ongoing challenge of balancing development across the country and ensuring affordable housing options are available nationwide.

Outlook for the Future

Looking ahead, the housing market in Israel is likely to remain vibrant. Factors such as population growth, the return of international investors post-pandemic, and continued interest from the diaspora community are expected to keep demand high. However, the market also faces potential headwinds from global economic uncertainties and domestic policy shifts which could impact both sales and rentals in unpredictable ways.


In conclusion, May 2024 has been a month of continued growth and challenges in Israel’s housing market. Both the sales and rental sectors are navigating through a landscape shaped by strong demand, regulatory changes, and economic forces. Stakeholders, including buyers, sellers, investors, and policymakers, will need to stay informed and adaptable to manage the ongoing complexities of this vital sector.