First-Time Buyers Lock In Tel Aviv Homes at 1.9-2.4M Shekels

First-home buyer inquiries in Tel Aviv rose 11 percent in the second quarter of 2026 compared with the same period last year, according to figures compiled by the Tel Aviv-Yafo Municipality planning department.

The uptick comes as mortgage rates stabilized near 4.1 percent and developers released new batches of smaller units in established districts. Families priced out of larger flats are now targeting compact two-bedroom apartments that sit just inside the reach of state-backed first-buyer grants.

Neighborhood Entry Points

In Florentin, listings under 2.1 million shekels moved within an average of 19 days during June, down from 27 days in March. Nearby in Neve Tzedek, the same buyer cohort is examining ground-floor units along Eilat Street and the western end of Shabazi Street, where prices begin at 2.3 million shekels for 58-square-metre apartments. The municipality’s “First Home in the City” registry logged 340 new applications from Tel Aviv residents under age 35 in the first half of July alone.

These two neighborhoods account for nearly a quarter of all first-home purchases recorded so far this year. Brokers at local agencies report that buyers are focusing on buildings constructed before 1980 that still qualify for the reduced purchase-tax bracket introduced in the 2024 housing amendment.

Next Steps for Buyers

Prospective purchasers should check the updated eligibility list on the municipality website before the next round of grant applications closes on 31 August. Early August viewings are already filling in Florentin and along the southern stretch of Allenby Street, where several 55-square-metre units remain listed below 2 million shekels. Those who secure pre-approval letters from Bank Hapoalim or Mizrahi Tefahot before month-end will be positioned to complete contracts ahead of the expected September price review.