Home prices in Israel continued to rise in November, recently released data shows.

Prices rose 0.6% in October and November 2024 compared to the previous two months, according to the Central Bureau of Statistics. Compared to the same period a year ago, October and November 2023, prices have surged 7.8%.

Prices continued to rise consistently in 2024 after declining in the second half of 2023. A combination of factors — including a longstanding housing shortage, strong population growth, and growing foreign investment — has kept demand high even as the conflict disrupts construction and economic stability.

Prices rose in all areas of the country. Compared to the previous two months, prices in October and November 2024 rose by 0.4% in Jerusalem, 0.4% in the northern district, 1.2% in the Tel Aviv area, 0.4% in the central Israel district, 0.3% in Haifa, and 0.2% in the southern district.

According to Finance Ministry data, 7,150 apartments were sold in November. This is 73% more than were sold last October, when real estate activity reached historic lows due to the outbreak of the war on October 7, 2023. It is an 8.5% increase from November 2022.

Sales in November were 40% higher than in October, with half of the increase due to the fact that there were fewer working days in October because of the holiday season.

Investors purchased 1,087 apartments in November and sold 1,397 apartments, 17% and 16% lower than in November 2022, respectively, the report said.

An annual report from CBS published in January found that the total number of apartments in Israel rose by 2.1% to 2.96 million between July 2024 and a year earlier. Of the 61,200 new apartments added, 24.7% were in the central district and 19.5% were in Tel Aviv, while just 10.3% were in Jerusalem, the report noted.

In the last 12 years, the housing supply in Israel has increased by 26.1%, the report said.

Looking forward to 2025, home buyers are going to pay more taxes after VAT was raised from 17% to 18% at the beginning of January. This will affect the purchase price of new construction properties and commercial real estate transactions, but not the sale of secondhand homes.

In addition, high-income sellers will........

© The Times of Israel