Herzliya: -0.9% in 2026, the market shifts to buyers' side

The real estate prices in Herzliya slightly declined in 2026, but the real signal lies elsewhere. In the first half of the year, the average transaction price reached around 3.782 million shekels, compared to 3.814 million a year earlier (-0.9%). Above all, the number of sales recorded in the statistics dropped sharply. For local professionals, this confirms that the market is now driven by buyers.

Herzliya Figures

Herzliya maintains its position as the second most expensive city in the ranking, behind Tel Aviv (4.45 M ₪) and ahead of Jerusalem (3.089 M ₪). But unlike its larger neighbor, it is no longer growing.

Sales Almost Halved

The drop from 544 to 300 transactions in one year is a decrease of about 45%. Two consequences:

- The average becomes more fragile: with fewer sales, a few atypical transactions weigh more in the calculation. The 0.9% decrease should therefore be interpreted with caution.
- The market is truly slowing down: fewer sales mean longer marketing times and sellers more willing to negotiate.

To better understand this type of statistical bias, check out our guide how to read CBS real estate statistics.

A Shift in the Balance of Power

A real estate agent based in Herzliya, interviewed by Ynet, says he is not surprised by these figures. According to him, the six-month decline is only part of the story. The underlying change has been building for several years:

- The market has shifted from a situation where sellers largely set the price to one where the buyer studies alternatives and negotiates;
- Buyers are more selective and under less pressure;
- They are much more sensitive to price and financing costs;
- Properties still listed at 2022 reference prices are struggling to find buyers, and truly motivated sellers must be flexible.

This observation goes beyond Herzliya. It matches what is seen in Ramat Gan, Petah Tikva, and Bat Yam, where averages are also declining.

What This Means for New Builds

In the new construction market, the developer does not always lower the listed price. They often prefer to use other incentives:

- Eased payment schedules at the start, with a larger portion paid upon delivery;
- Assisted financing or covering interest during construction;
- Included options: kitchen, air conditioning, parking, storage room, closets.

These benefits do not appear in official statistics. A "stable" price can therefore hide a real discount. Conversely, a financing incentive may end up costing more than a direct discount in the long run. See our analysis of developer financing promotions.

Herzliya: A Market with Many Faces

Speaking of "Herzliya" in general terms makes little sense for a buyer. The areas near the marina and the sea, historically the most sought-after, follow different dynamics than the city center or neighborhoods undergoing urban renewal. A drop in the average price can coexist with high-end developments that sell well, alongside less ideally located properties that stay on the market for a long time. It is precisely in this second category that the room for negotiation is greatest.

For an Israeli resident looking to upgrade, as well as for an overseas buyer targeting the coast, the best approach is to compare several developments, sector by sector, before making any offer.

How to Take Advantage Without Taking Risks

A buyer's market is favorable, as long as you stay methodical.

Prepare Your File Before Negotiating

A preliminary bank agreement and a clear view of your contribution strengthen your position. A financing broker can obtain this for you in advance. Check your capacity with the financing simulator.

Compare Several Developments

Herzliya has very different areas: near the marina and the beach, downtown, neighborhoods undergoing urban renewal. Also compare with nearby Sharon cities like Netanya and Kfar Saba.

Negotiate the Entire Package

Price, payment schedule, options, indexation, delivery date, late penalties. Each element has value. Our complete method: buying new in a buyer's market.

Get Everything Validated

An independent lawyer secures the contract and the bank guarantee, a broker optimizes the mashkanta, an architect checks plans, surfaces, and features. Don't forget additional costs: 18% VAT included for new properties, acquisition tax depending on your profile, closing costs around 10 to 13%.

IsraelStart supports buyers from abroad and Israelis already in Israel on more than 300 new projects throughout Israel. A personalized review, with no obligation, helps identify where your budget has the most impact today.

Sources and Methodology

- Ynet analysis of Central Bureau of Statistics (CBS) data, published September 15, 2026.
- Israel Central Bureau of Statistics (CBS) — average transaction prices by city and by number of rooms.
- Bank of Israel — real estate credit volumes (August 2026 data).

Prices for the first half of the year are an arithmetic average of the first two quarters, compared to the same calculation for 2025. The number of transactions is not weighted: a small volume of sales can strongly affect a city's average. Figures are indicative and should be cross-checked project by project before making any decisions.