ContactJERUSALEM MARKET INTELLIGENCE
Jerusalem Real Estate Market Statistics - Q1 2026
KEY TAKEAWAY
Prime Jerusalem real estate appreciated 8–12% annually over the past decade. Average price per sqm ranges from ₪28,000 in emerging neighborhoods to ₪75,000+ in ultra-premium areas. Gross rental yields average 2.5–3.5%. Foreign buyers represent ~15% of premium transactions. The market has 75–110 average days on market for correctly priced properties.
Average Prices by Neighborhood (Q1 2026)
| Neighborhood | Price/sqm (NIS) | Price/sqm (USD) | 4-Room Apt (NIS) | Annual Apprec. | Gross Yield |
|---|---|---|---|---|---|
| Yemin Moshe | ₪65,000–75,000 | $17,800–20,500 | ₪8.5M–12M | 5–7% | 1.8–2.5% |
| Mamilla | ₪55,000–70,000 | $15,000–19,100 | ₪7M–10M | 5–7% | 2.0–2.8% |
| Talbieh | ₪48,000–62,000 | $13,100–16,900 | ₪6M–8.5M | 6–8% | 2.2–3.0% |
| Rehavia | ₪42,000–55,000 | $11,500–15,000 | ₪5M–7.5M | 7–9% | 2.5–3.2% |
| German Colony | ₪38,000–50,000 | $10,400–13,700 | ₪4.5M–6.5M | 7–9% | 2.8–3.5% |
| Baka | ₪32,000–42,000 | $8,700–11,500 | ₪3.5M–5M | 8–10% | 3.0–3.8% |
| Old Katamon | ₪30,000–40,000 | $8,200–10,900 | ₪3.2M–4.8M | 8–11% | 3.5–4.5% |
| Arnona | ₪28,000–38,000 | $7,700–10,400 | ₪3M–4.5M | 9–12% | 3.8–4.8% |
| Talpiot | ₪25,000–35,000 | $6,800–9,600 | ₪2.5M–4M | 10–14% | 4.0–5.0% |
Data reflects Q1 2026 closed transactions. Prices are ask-based estimates. Actual transaction prices may vary by 5–15% based on condition, finishes, and negotiation.
Market Performance Indicators
75–110
Average Days on Market
~15% of premium
Foreign Buyer Share
5–15%
Pre-Sale Discount
~65%
Cash Transaction Rate
80–140%
10-Year Appreciation
₪3.65/$1
NIS/USD Exchange Rate
Purchase Cost Summary for International Buyers
| Cost Item | Foreign Buyer | New Oleh | Israeli Resident |
|---|---|---|---|
| Purchase Tax (₪5M) | ₪400,000 (8%) | ₪160,000 (~3.2%) | ₪101,000 (~2%) |
| Attorney Fees | 1–1.5% + VAT | 1–1.5% + VAT | 1–1.5% + VAT |
| Agent Commission | 2% + VAT | 2% + VAT | 2% + VAT |
| Max Mortgage LTV | 50% | 75% | 75% |
| Mortgage Rate | 5.5–7.0% | 5.0–6.5% | 4.5–6.0% |
Key Market Drivers in 2026
Light Rail Expansion
Green Line May 2026, Blue Line 2028-2030
Urban Renewal (TAMA 38)
4,000+ units in pipeline across Jerusalem
International Demand
400% increase in foreign buyer inquiries post-October 7
Supply Constraint
Premium inventory remains severely limited