Luxury Real Estate in Israel: Penthouses Slow Down

The luxury segment is not immune to the slowdown in the Israeli market. A penthouse located in an urban renewal tower in Ramat Gan was just sold for nearly a quarter below its initial asking price. This case, detailed by Globes, sheds light on how prices for exceptional properties are set and the possible room for negotiation. It is of interest both to buyers from abroad, who are very active in this segment, and to Israelis considering moving upmarket.

A Penthouse Sold 24% Below Its Asking Price

According to Globes, on September 27, 2026, a 199 sqm penthouse located on the 29th floor of a Ramat Gan tower, with 97 sqm of terraces and sold furnished, was purchased for 9M₪. The initial asking price was 11.9M₪, a difference of about 24%.

The urban renewal project where it is located replaced four 1950s buildings, which had 83 apartments, with two towers totaling 285 apartments.

Price Evolution per sqm in the Project

The comparable penthouse sold in 2022 benefited from a sea view, a 160 sqm terrace, and a pool. The comparison shows that in real terms, after accounting for inflation since 2022, high-end prices have indeed declined in this project.

Why Luxury Prices Vary So Much

This case illustrates a key rule: in the high-end market, two properties in the same building can show considerable price differences. According to the appraiser quoted by Globes, three main factors explain most of the gap:

- Orientation: an apartment facing west, with a sea view, is valued much higher than one facing east.
- Terraces: their size and layout, including a pool, have a strong impact on the price.
- Options: in the case studied, options and finishes accounted for about ₪700,000.

For buyers, this means that an average price per sqm is not enough to assess an offer. The architect is essential to analyze orientation, actual surfaces, and the quality of features.

A Market Under Pressure: Credit, Currency, and Prices

This slowdown is part of a broader context. According to the Nadlan Center, housing prices have fallen by 1.2% year-on-year nationwide, and by 3.2% in the Central District, which includes Ramat Gan. The Times of Israel also reports that the average price of a home in Tel Aviv has reached 3.58M₪.

Credit is also a factor: according to the Nadlan Center, the average loan for an investment has increased from 1.17M₪ to 1.37M₪, and the average weighted nominal rate reached 4.38% in August. The Bank of Israel lowered its key rate to 3.25% on September 1, with the next decision expected on October 21, 2026.

The Currency Factor for Buyers from Abroad

The luxury segment relies heavily on buyers from abroad. However, according to the Times of Israel, the shekel is trading at around 2.99₪ to the dollar, about 10% stronger than a year ago. A 24% price drop in shekels therefore partially offsets this increase. The financing simulator helps measure the combined impact of price, rate, and currency on your budget.

Buying a High-End Property: The Right Approach

Whether you are purchasing from abroad or already living in Israel, a few rules apply in this segment:

1. Compare property by property: orientation, floor, terraces, and features, rather than relying on an average price.
2. Test the negotiation: a gap of nearly a quarter between the asking price and the final price shows that sellers of exceptional properties accept significant adjustments. Our article on how to negotiate in a declining market details the method.
3. Check ownership: registration at the Tabo, status of the co-ownership, and terraces—these must be validated by your lawyer before signing.
4. Calculate the total cost: 18% VAT included for new properties, closing fees of 10 to 13%, and purchase tax, to be estimated with the tax and fee simulator.

For an overview of major ongoing projects in the city, also read our article on the towers in the Bursa district of Ramat Gan.

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Sources

- Globes — Penthouse sold below starting price in Ramat Gan (09/27/2026)
- Times of Israel — Housing snapshot September 2026 (CBS and Ministry of Finance data)
- Nadlan Center — Mortgage and price review (09/30/2026)
- Bank of Israel — Monetary policy statement (09/01/2026)