Buying a house in Israel: prices per city, and what an oleh saves
In the second quarter of 2026 a home in Israel cost an average of 2.4 million shekels, 4.6 million in Tel Aviv and 1.2 million in Beer Sheva. An oleh gets a discount on the purchase tax when buying between one year before and seven years after aliyah. On land, tax brackets and mortgage rules, the sources we could read are silent.
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In the second quarter of 2026 a home in Israel cost an average of 2,435,000 shekels, as measured by the Central Bureau of Statistics, the Israeli statistics office, from actual sales. In Tel Aviv it was 4.55 million, in Beer Sheva 1.24 million. Anyone making aliyah gets a discount on the tax you pay on purchase, if buying between one year before and seven years after aliyah. For those returning as an Israeli or coming as a partner, the sources we could read mention no discount.
What does a home cost per city?
Average sale price in thousands of shekels, according to the CBS. The figures for the second quarter are provisional.
| City | First quarter 2026 | Second quarter 2026 | Rent per month, second quarter |
|---|---|---|---|
| Tel Aviv | 4,362 | 4,554 | 7,421 |
| Jerusalem | 3,120 | 3,059 | 5,347 |
| Netanya | 2,817 | 2,644 | 4,816 |
| Haifa | 1,744 | 1,816 | 3,405 |
| Beer Sheva | 1,260 | 1,236 | 3,183 |
| All of Israel | 2,349 | 2,435 | 5,086 |
Put the two columns side by side and you see why many people rent first. A year's rent in Tel Aviv, 12 times 7,421 shekels, is about 2 per cent of the average purchase price. In Haifa it is just over 2 per cent. The CBS only counts homes of 1 to 6 rooms, excluding government-subsidised sales.
What does making aliyah save?
According to the Jewish Agency there are two benefits for olim when buying:
- A discount on the purchase tax, for a home you buy in the period from one year before to seven years after your aliyah.
- A mortgage with an interest subsidy for first-time buyers, for a limited amount, within 15 years of the date of aliyah.
How high the discount is and how large the mortgage may be, we did not find in an official text: we could not open the pages of the Israel Tax Authority and the Ministry of Aliyah and Integration. That ministry's guide of December 2022 only says that olim get preferential terms for a government mortgage. That is why we give no percentages.
Do not buy too early. If you sign the purchase more than a year before your aliyah, the home falls outside the period in which an oleh gets a discount on the purchase tax.
Why does the purchase deed count at Bituach Leumi?
Because a home of your own shows that your life is in Israel. Bituach Leumi, the National Insurance Institute, explicitly lists the purchase of an apartment as proof in the questionnaire about your centre of life. For a partner with an A/5 visa or a returning Israeli, that helps in establishing residency, and therefore in access to state health insurance. See healthcare in Israel.
What could we not check?
Three things you do need to know before making an offer are only on websites that refuse automated requests:
- The land. How ownership of the land is arranged, and what that means for a buyer, is set out by the Israel Land Authority.
- The purchase tax. The brackets and rates, and the difference between a first home and a second, are with the Israel Tax Authority.
- The mortgage. How much a bank may lend, and whether that differs for non-residents, is decided by the Bank of Israel.
Have this checked by an Israeli lawyer handling the purchase, and ask the bank before you commit your own money. According to the guide of the Ministry of Aliyah and Integration (December 2022) the lawyer also checks where exactly the home is registered, whether there is no mortgage or attachment on it, and makes sure it is registered in your name.
What if you keep a house in the Netherlands?
That stays Dutch. The tax treaty between the Netherlands and Israel, of 2 July 1973, says that income from immovable property may be taxed in the country where it is located (article 7). The same applies to capital (article 25). If you rent out your Dutch house while living in Israel, the Netherlands may therefore keep taxing that rent. It also works the other way: Israel may tax a house in Israel, even while you still live in the Netherlands.
How your move and your tax position fit together is in AOW, pension and tax. If you want to rent first, see renting in Israel.
In Vertrekklaar this is phase 5 of 5 of the journey, step 5.6: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Israel or go straight to step 5.6 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Central Bureau of Statistics — table 2.2, average dwelling price by district, big city and number of rooms (edition 7/2026) — cbs.gov.il
- Central Bureau of Statistics — table 4.9, average rent per city (edition 7/2026) — cbs.gov.il
- Jewish Agency — purchase tax discount and mortgage assistance for olim — jewishagency.org
- National Insurance Institute — a purchase deed as proof that your life is in Israel — btl.gov.il
- Netherlands–Israel tax treaty (Jerusalem, 2 July 1973), articles 7 and 25 on immovable property — wetten.overheid.nl
- Ministry of Aliyah and Integration — Guide for the New Immigrant (December 2022), buying a home with a lawyer, and the government mortgage for olim — gov.il
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