As of December 2024, Israel’s real estate market is experiencing a nuanced trend in property prices. After nine consecutive months of increases, home prices saw a slight decline of 0.1% in November 2024. (buyitinisrael.com)

Several factors contribute to this development:

1. Interest Rates: The Bank of Israel has maintained the benchmark interest rate at 4.5% for five consecutive meetings, aiming to control inflation, which stood at 3.2% as of August 2024. This steady interest rate influences mortgage costs and, consequently, housing demand. (reuters.com)
2. Housing Supply: At the end of 2023, the market had an unprecedented supply of over 62,000 new homes. This high inventory, coupled with limited demand, has exerted downward pressure on prices. (buyitinisrael.com)
3. Geopolitical Factors: The ongoing conflict and geopolitical instability have introduced economic uncertainty, affecting consumer confidence and investment in the real estate sector. (lemonde.fr)

In summary, while Israel’s real estate prices have shown resilience over the past decade, current economic conditions and geopolitical factors have led to a slight decrease in prices as of late 2024.