A jump in apartment prices in Haifa

(live here) – A sharp increase in apartment prices in Haifa in 2024, according to new data published by the Central Bureau of Statistics. The data indicates that apartment prices in Haifa in 2024 increased sharply, with a jump of 16.5% compared to the last quarter of 2023.

Despite the increase, Haifa still offers relatively low prices compared to cities in the center of the country, such as Tel Aviv and Herzliya. Further examination shows that apartment sales in the city, both new and second-hand, are on the rise, but the effects of the security situation are also evident in the real estate sector.

Haifa among the leaders in price increases

In a nationwide comparison, Haifa recorded a significant increase in apartment prices, but it is not the only city where a price spike was observed. Rishon LeZion leads the national increase with 18.6%, followed by Holon, with an increase of 18.3%.

Despite the price increases, Haifa is still considered a city where apartment prices are relatively affordable compared to the central cities. According to the data, an average real estate transaction in Haifa in the last quarter of 2024 was 1.718 million NIS, while in Herzliya the average price was 4.109 million NIS and in Tel Aviv it was 4.096 million NIS. Other cities offering relatively low prices include Be'er Sheva with 1.288 million NIS and Ashkelon with 1.702 million NIS.

Significant increase in new apartment sales

The data shows that the new apartment market in Haifa is growing rapidly. In 2024, 1,216 new apartments were sold in the city – a 37.4% increase compared to 2022, when 885 new apartments were sold, and a 56.5% increase compared to 2023, when only 777 apartments were sold.

Despite the improving trend, Haifa still ranks only 11th in new apartment sales. The list is led by Tel Aviv with 3,267 new apartments sold, and Jerusalem with 2,984 new apartments.

Haifa leads in second-hand apartment sales

In contrast to the new apartment market, the second-hand apartment market in Haifa is at the top of the national table. In 2024, 3,776 second-hand apartments were sold in the city, more than any other city in Israel. It is followed by Jerusalem with 3,371 apartments sold and Beer Sheva with 3,362 apartments.

Compared to previous years, 2024 showed a 13.3% improvement in second-hand apartment sales compared to 2023, when 3,332 second-hand apartments were sold. However, compared to 2022, when 4,987 second-hand apartments were sold in the city, there was a 24.3% decrease.

The impact of the security situation on the real estate market in Haifa

CBS data indicate that the impact of the "Iron Swords" war is also evident in the real estate market. The war led to changes in sales volumes and buyer preferences, both within Haifa and compared to other cities in Israel. It is possible that some buyers preferred to postpone transactions or explore living options outside the city due to the security situation.

Still a high number of new apartments for sale

Despite the increase in sales, the inventory of new apartments remaining for sale in Haifa is still relatively high, at 2,338 apartments. This figure places Haifa in ninth place in the country in terms of inventory of new apartments for sale.

Additionally, in recent months there has been an increase in the number of new projects receiving building permits in the city. This means that thousands more new housing units will be offered for sale in the coming years, which may affect apartment prices and the city's real estate market as a whole.