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Up and Up: Fewer Deals in the Luxury Market, but the Price per Square Meter Breaks Records
NIS 55 million for a penthouse in central Tel Aviv, NIS 27 million for an apartment on the 43rd floor in Sde Dov, and more than NIS 25 million for a penthouse in Jerusalem: Israel’s luxury residential market continues to operate separately from the general housing market, recording a 22% jump in price per square meter. With the assistance of the Real Estate Appraisers Association, we examined the most expensive properties sold at the beginning of 2026.
In recent months, Israel’s luxury residential market has returned to the headlines with reports of major transactions, including penthouses sold for tens of millions of shekels. For example, in Tel Aviv, WeBox, the developer of the Gat Rimon Tower project, sold a penthouse to a French businessman for approximately NIS 55 million. In the Sprinzak project in the city, the Yitzhaki-Hasson Group sold a duplex penthouse to a high-tech entrepreneur for approximately NIS 32 million. Meanwhile, in the Muza project in northern Tel Aviv, Phoenix and America Israel sold a penthouse apartment for approximately NIS 23 million to a family involved in the real estate and infrastructure sectors.
These transactions have not yet been reported to the Israel Tax Authority. An examination conducted for Mamon and ynet by the Real Estate Appraisers Association, which reviewed luxury transactions above NIS 15 million reported to the Tax Authority in the first quarter of 2026, found that unlike the last two months, the 10 most expensive properties sold in Israel during the first quarter of the year did not exceed approximately NIS 28 million.
The review shows that Tel Aviv and Jerusalem continue to almost completely dominate the local luxury market. Among the top 10 most expensive transactions, apartments in new projects in Sde Dov, District 4 and District 5 in Tel Aviv stand out, alongside luxury projects in Jerusalem on Shmuel HaNagid, Chopin and Shomrei Emunim streets. Most of the transactions involved especially large apartments, penthouses and garden apartments in new buildings that have not yet been occupied.
The most expensive apartment sold in the first quarter of 2026 was an apartment for NIS 27.785 million in the Sde Dov district. The apartment is located on the 43rd floor of a 44-story building and spans 255 sqm. The expected year of construction is 2034. The apartment was sold in the First project by the Hagag Group, which includes a total of 350 housing units.
The second apartment is located in an urban renewal project with only six apartments by a private developer at 18 Shmuel HaNagid Street in Jerusalem. It was sold for NIS 25.418 million. The property is a penthouse apartment located on the fifth floor of a five-story building, expected to be built in 2029.
The third apartment was also sold in Tel Aviv, in the Sde Dov district, for NIS 25.402 million. It is an apartment on the 32nd floor of a 45-story building, spanning 237 sqm, in a project by Luzon Ronson that includes 45 floors and 340 housing units. The expected year of construction is 2031.
The fourth apartment was sold in Tel Aviv’s District 4, in a project located at 33 Bodenheimer Street, for NIS 23.506 million. It is a garden apartment spanning 223 sqm in a four-story building, part of a TAMA 38/2 demolition and reconstruction project promoted by Pi Engineering and Development, which includes 10 apartments. The expected year of construction is 2029.
The fifth apartment was sold in Tel Aviv’s District 4, in a project at 12 Fishman Street, for NIS 22.509 million. This is also a garden apartment, spanning 249 sqm, in a seven-story building as part of a TAMA 38/2 demolition and reconstruction project promoted by Karinsky Gottlieb, which includes 23 apartments. The expected year of construction is 2028.
The sixth apartment is located in Jerusalem and was also sold in the project at 18 Shmuel HaNagid Street, for NIS 19.266 million. It is a garden apartment spanning 204 sqm, in the same private developer’s project with only six apartments, expected to be built in 2029.
The seventh apartment was also sold in Jerusalem, in a project located at 24 Chopin Street, for NIS 18.718 million. It is an apartment on the second floor of a four-story building, spanning 187 sqm, in the Mishkenot HaTeatron project, which also includes the Theater Hotel by the Hassid brothers. The year of construction is 2023.
The eighth apartment was sold in Tel Aviv, in a project located at 14 HaAvoda Street in District 5, for NIS 18 million. It is a garden apartment spanning 186 sqm in a five-story building, part of a TAMA 38/1 reinforcement and addition project with 20 apartments, promoted by Arad-Luxembourg Investments. The expected year of construction is 2027.
In ninth place, an apartment was sold in Jerusalem, in a project located at 11 Shomrei Emunim Street, for NIS 17.851 million. It is an apartment on the seventh floor of an eight-story building, spanning 174 sqm. The year of construction is 2026.
The apartment closing the top ten for the first quarter of the year is located in Tel Aviv’s District 4, in a project at 3 Hankin Street. It was sold for NIS 17.6 million. The property is a penthouse apartment on the seventh floor of a seven-story building, spanning 188 sqm, in a TAMA 38/2 demolition and reconstruction project promoted by Noga Real Estate Development. The project is already occupied.
Behind the major transactions lies a surprising trend: in the first quarter of 2026, there was actually a decline in the volume of luxury transactions and in the average transaction price. According to the Association’s analysis, only 20 transactions above NIS 15 million were carried out in the first quarter, the lowest number in the past four years.
The average transaction price also dropped to approximately NIS 18.3 million, compared with NIS 21.4 million in the first quarter of 2025 and NIS 21.5 million in 2024. On the other hand, the average price per square meter jumped to a record of approximately NIS 87,300 per sqm, an increase of about 22.4% within one year.
The Association explains that the reason lies in the type of apartments sold: fewer spacious villas and cottages, which were sold in previous years in Herzliya and Caesarea, and more relatively smaller luxury apartments in prime locations in Tel Aviv and Jerusalem. As a result, while total prices were lower, the price per square meter was significantly higher.
Nechama Bogin, Chairwoman of the Real Estate Appraisers Association, which conducted the review, noted: “The data from the first quarter of 2026 points to a structural change in the composition of luxury transactions. Demand is shifting from spacious villas and cottages to unique apartments in new projects in Tel Aviv and Jerusalem. This phenomenon explains why the average transaction price decreased, while the price per square meter jumped to a record of approximately NIS 87,300.”
Roie Kaner, CEO of Montefiore Real Estate Group, which specializes in luxury residential marketing and representing foreign residents and new immigrants, commented on the transaction data and noted: “In the first quarter of 2026, Israel’s luxury apartment market proved that even during a complex period, rare properties in exceptional locations continue to generate significant transactions.”
Kaner also emphasized: “The 10 most expensive transactions were all concentrated in Israel’s most popular luxury hubs, Tel Aviv and Jerusalem. But the most interesting data point comes specifically from Tel Aviv: with the exception of one transaction, all of the city’s highest transactions took place in only two areas, District 4, around Kikar HaMedina, and the Sde Dov district.”
Kaner explained: “In District 4, the large number of TAMA 38/2 projects, demolition and reconstruction, is creating a significant supply of new apartments. In Sde Dov, there is a large supply of apartments in future projects in one of Tel Aviv’s last and most significant coastal areas. This combination of excellent and rare locations on the one hand, and growing competition between projects on the other, creates especially strong purchasing opportunities for buyers who understand the market and act wisely.”
“In other words,” he continued, “buyers in these transactions are not necessarily only chasing the most expensive apartment. They are identifying an interesting moment in time: very high-quality areas with clear appreciation potential, where the volume of supply creates price competitiveness, better transaction terms, and sometimes flexibility from developers and sellers. This is exactly the dynamic that characterizes sophisticated luxury-market buyers: on the one hand, they do not buy solely according to price per square meter; on the other hand, they work to identify attractive deals and do not buy at any price.”
According to him: “The geopolitical situation also has a clear impact. A significant part of the natural target audience for the luxury market, foreign residents, has not yet fully realized its enormous potential for purchasing luxury apartments due to the decline in tourist movement and visits to Israel, despite the strong demand that exists. In our work, we see this up close, with an increase of hundreds of percent in inquiries for luxury apartment purchases from foreign residents and people planning Aliyah to Israel. The fact that we already know of quite a few transactions carried out in the second quarter of the year at amounts significantly higher than those in the first quarter further strengthens the conclusion that Israel’s luxury market continues to grow.”
