Executive Summary
The Nahariya real estate market demonstrated remarkable resilience and growth during the first half of 2025, with transaction volumes increasing by 18% year-over-year. The average property price rose by 7.3%, reaching ₪1,985,000.
This report provides a comprehensive analysis of key market indicators, residential and commercial transaction trends, and emerging investment patterns in Nahariya’s real estate market for Q1–Q2 2025.
Market Overview
Nahariya, Israel’s northernmost coastal city, continued its emergence as a desirable real estate destination.
With a unique combination of Mediterranean beachfront, upgraded infrastructure, and relative affordability compared to central Israel, Nahariya has attracted growing interest from both domestic buyers and foreign investors.
Key Market Statistics (Q1–Q2 2025)
- Total Transactions: 873 (↑18% YoY)
- Average Residential Sale Price: ₪1,985,000 (↑7.3% YoY)
- Average Price per Square Meter: ₪16,200 (↑9.1% YoY)
- Average Time on Market: 62 days (↓14 days YoY)
- Mortgage Volume: ₪1.28 billion (↑21% YoY)
Residential Real Estate Analysis
Transaction Volume by Property Type
| Property Type | Transactions | YoY Change | Avg. Price (₪) | YoY Price Change |
|---|---|---|---|---|
| Apartments | 612 | ↑14% | 1,750,000 | ↑6.8% |
| Houses | 143 | ↑21% | 3,250,000 | ↑9.2% |
| Penthouses | 47 | ↑35% | 4,100,000 | ↑12.1% |
| Duplexes | 31 | ↑11% | 2,900,000 | ↑8.4% |
Price Trends by Neighborhood
| Neighborhood | Avg. Price (₪) | YoY Change | Avg. ₪/m² | Avg. Time on Market |
|---|---|---|---|---|
| Beachfront | 3,950,000 | ↑14.2% | 32,500 | 41 days |
| City Center | 1,890,000 | ↑6.3% | 17,200 | 53 days |
| North Nahariya | 1,750,000 | ↑5.8% | 15,400 | 58 days |
| South Nahariya | 1,680,000 | ↑4.9% | 14,600 | 64 days |
| Ga’aton River Area | 2,350,000 | ↑11.7% | 19,800 | 49 days |
| Eastern Neighborhoods | 1,420,000 | ↑3.2% | 12,900 | 78 days |
New Residential Development Projects
- Sea View Towers: 122 luxury apartments, 85% sold, average ₪28,500/m²
- Nahariya Gardens: 96 mid-range apartments, 67% sold, average ₪16,800/m²
- Park Heights: 75 apartments including 28 penthouses, 42% sold, average ₪19,200/m²
- Coastal Villas: 18 detached homes, 89% sold, average ₪4,300,000
- East Nahariya Complex: 210 affordable units, 95% sold, average ₪13,400/m²
Commercial Real Estate Analysis
While not as dynamic as the residential sector, Nahariya’s commercial market maintained stable growth, with a focus on retail and office expansions.
Commercial Transactions by Type
| Property Type | Transactions | YoY Change | Avg. Price (₪) | YoY Price Change | Avg. ₪/m² |
|---|---|---|---|---|---|
| Retail Space | 24 | ↑8% | 1,850,000 | ↑3.1% | 14,200 |
| Office Space | 11 | ↑5% | 2,350,000 | ↑2.8% | 11,600 |
| Industrial | 5 | ↓16% | 3,200,000 | ↑1.2% | 6,800 |
Major Commercial Developments
- Ga’aton Business Center: 8,500m² mixed-use project, 60% leased.
- Nahariya Tech Hub: 3,200m² tech-focused office park, 45% occupied.
- Coast Mall Expansion: 4,600m² new retail space under construction.
Investment Analysis
Return on Investment (ROI)
| Asset Class | Avg. Annual Rental Yield | Capital Appreciation (H1 2025) | Total ROI (Annualized) |
|---|---|---|---|
| Apartments | 3.8% | 6.8% | 10.6% |
| Houses | 2.9% | 9.2% | 12.1% |
| Commercial | 5.7% | 2.4% | 8.1% |
Foreign Investment Trends
Foreign buyers represented 17% of all transactions:
- French nationals: 42%
- North American buyers: 31%
- UK buyers: 14%
- Other European buyers: 13%
Market Drivers and Challenges
Positive Drivers
- Infrastructure Improvements: Completion of Highway 6 northern extension has enhanced connectivity to Haifa and central Israel.
- Remote Work Trends: Increasing acceptance of remote work supports relocation from more expensive cities.
- Tourism Growth: A 26% rise in tourism is boosting demand for short-term rentals and investment properties.
- Government Incentives: Tax breaks and grants for new residents under the “Northern Development” initiative.
Challenges
- Construction Cost Inflation: Materials prices rose 12% YoY, impacting new project economics.
- Higher Mortgage Rates: Average rates climbed from 3.8% to 4.3% in H1 2025.
- Land Scarcity: Limited availability of prime plots is creating a competitive environment.
Market Outlook
Q3–Q4 2025 Forecast
- Expected price appreciation: 4–5%
- Transaction volume growth expected to moderate to 3–5%
- Increased new project launches (15–20% growth projected)
- Rental rate growth expected between 6–8% amid tight supply
Longer-Term Projections (2026–2030)
- Beachfront revitalization programs enhancing coastal desirability
- Proposed light rail link to Haifa (completion expected by 2028)
- Expansion of the local tech ecosystem with new satellite offices
- Growth in medical tourism centered around the Western Galilee Medical Center
Methodology
Sources:
- Israel Land Authority transaction data
- Nahariya Municipality Planning Department
- Aggregated statistics from local real estate agencies
- Mortgage lender data
- Construction permit and approval records
Data Collection Period: January 1, 2025 – April 26, 2025
Sample Size: 873 residential and 40 commercial transactions
About the Author
This report was prepared by offplanisrael.com, a premier real estate market intelligence firm specializing in the Israeli property sector.
For tailored reports, investment consulting, or additional data insights, please contact [email protected].
