How to Read Real Estate Price Statistics in Israel (CBS) Without Mistakes

The real estate price statistics in Israel are valuable, but they can easily be misinterpreted. In 2026, the latest housing price index published by the Central Bureau of Statistics (CBS, or Lamas in Hebrew) showed a year-over-year decrease. At the same time, the average transaction price for the first half of the year was up by 3.9%. Contradiction? No: these two figures do not measure the same thing.

Whether you are following the market from abroad or from within Israel, here is a guide to correctly interpreting the numbers before buying.

Two Figures That Seem Contradictory

To understand, you need to distinguish the method of each indicator.

Price Index vs. Average Price

The Housing Price Index

The index aims to measure the change in the price of a comparable home over time. It takes into account property characteristics (location, size, age) to avoid trends being distorted by changes in the types of properties sold. This is the most reliable indicator for knowing whether "prices are rising or falling."

The Average Transaction Price

The average price is a simple average of prices paid over a period. It's intuitive and easy to understand, but sensitive to the mix of sales. If a semester includes more large new apartments in Tel Aviv, the national average price rises, even if no comparable home has increased in value.

In the analysis for the first half of 2026, the semester price was calculated as the arithmetic mean of the first two quarters, without weighting by the number of transactions. A simple method, but with its limitations.

The Four Biases to Know

1. The Composition Effect

This is the main bias. In Tel Aviv, the 6.6% increase in the average price is largely attributed to the construction of luxury residences and boutique buildings in the most sought-after neighborhoods. See our analysis of Tel Aviv.

Similarly, nationwide, 1-2 room apartments rose by 8.3%: part of this increase may come from their concentration in the most expensive cities. Details in apartment prices by number of rooms.

2. The Transaction Volume

The fewer sales there are, the more fragile the average becomes. In Herzliya, data for the first half of 2026 covers 300 transactions, compared to 544 a year earlier. Just a few atypical sales can significantly affect the average. See our analysis of Herzliya.

3. Undeclared Incentives

The CBS records the transaction price, not the incentives offered by developers: subsidized financing, relaxed payment schedules, included options. A real estate expert quoted by Ynet estimates that if these were neutralized, average prices would actually show a slight decrease nationwide. See developer financing promotions.

4. The Time Lag

The data covers transactions declared with a delay. The statistics therefore describe the market from a few months ago, not the one on your signing day.

The new feature: the quarterly second-hand index

Since the September 2026 release, the CBS has included a second-hand housing price index, published every quarter and broken down by district.

For buyers of new properties, this is a useful tool:

- Compare the price of a new development with second-hand properties in the same area;
- Measure the new-build premium: a gap that's too wide may indicate an overvalued price;
- Track regional trends rather than just the national average.

Using Statistics for Your Purchase

1. Use the index for trends, and the average price for a general idea.
2. Drill down to the finest level: city, neighborhood, size, new or old. The government site nadlan.gov.il lets you view declared transactions.
3. Check the number of transactions before drawing conclusions from a variation.
4. Convert developer incentives into shekels to compare offers on a fair basis.
5. Calculate the full cost: 18% VAT included for new properties, purchase tax according to your profile, closing costs around 10 to 13%. Get a first estimate with the taxes and fees simulator.

Statistics do not replace the analysis of a specific property. A lawyer checks the contract, a broker handles financing, and an architect reviews plans and features. IsraelStart relies on this data and over 300 new projects across Israel to guide buyers from abroad as well as Israelis already living there. A personalized, no-obligation review helps you see things clearly.

Sources and Method

- Ynet analysis of Central Bureau of Statistics (CBS) data, published on 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 sales volume can significantly affect a city's average. Indicative figures, to be cross-checked project by project before making any decisions.