Apartment Prices in Jerusalem 2026 — Current Situation

The Jerusalem real estate market continues to rise in 2026, but at a different pace from neighborhood to neighborhood. The citywide average stood at approximately 3,050,000 ₪ for a 4-room apartment at the end of the first quarter of 2026, an increase of about 5.8% compared to the beginning of 2025.

Prices by Leading Neighborhoods

Premium Neighborhoods

Rehavia and Ramat Eshkol: 6,200,000–9,500,000 ₪ for 4–5 room apartments. The demand from Jewish immigrants from France and England remains high.

High Demand Neighborhoods

Katamon, Bak'a, and Abu Tor: 3,800,000–5,200,000 ₪. Ramat Eshkol and Pisgat Ze'ev: 2,100,000–2,700,000 ₪.

Growing Neighborhoods

Neve Yaakov, Northern Pisgat Ze'ev, and Ramat Shlomo: 1,850,000–2,400,000 ₪ — considered a relative bargain in the Jerusalem market.

Comparison to Neighboring Cities

For those looking for an apartment at a lower budget, properties in Ma'ale Adumim start from 1,900,000 ₪ and allow a 20-minute commute to Jerusalem. Also, apartments in Beitar Illit offer an alternative with a budget of 1,500,000–1,900,000 ₪.

Forecast for the End of 2026

According to data from the Israel Land Authority and market analyses, the expectation is for an additional increase of 3–4% by the end of the year, assuming that interest rates do not drop significantly.