First-Time Buyers Surge in Tel Aviv as Starter Home Prices Stabilize

First-home buyer searches in Tel Aviv rose sharply in June, with agents recording a 14 percent increase in inquiries for units under 55 square metres compared with the same month in 2025.

The shift matters now because mortgage rates have remained anchored near 4.25 percent since the Bank of Israel held its benchmark steady in May, giving first-time purchasers a brief period of price stability before any potential policy move later this year.

Activity has concentrated in Florentin, where first-time buyers have been touring walk-up buildings along Levinsky Street and nearby side lanes, and in the Jaffa section of the city, where renovated one-bedroom flats near the clock tower have drawn repeated viewings through the municipal housing registry.

Figures released by the Central Bureau of Statistics on 3 July placed the median price for a two-room apartment in the Tel Aviv district at 1.95 million shekels, unchanged from March levels and down 2 percent from the peak reached in December 2025.

Entry points in southern neighbourhoods

Agents operating along Rothschild Boulevard report that studios and one-bedroom flats listed between 1.6 million and 1.9 million shekels now receive offers within ten days, a pace not seen since early 2024. Listings in the same range near the Carmel Market have also moved faster, with several properties closing above asking after multiple first-time buyers competed on the same day.

Local branches of Bank Leumi and Mizrahi Tefahot have noted a rise in pre-approval requests from applicants under 35, many of them citing the availability of units priced below 2 million shekels as the deciding factor.

Next steps for buyers

Prospective purchasers should review current listings on the Tel Aviv Municipality property portal and schedule pre-approvals at least two weeks before attending open houses. Checking the latest Bank of Israel interest-rate announcement, due on 22 July, will help determine whether entry points remain accessible through the summer.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.