Caesarea Real Estate Market Transactions Report: Q1–Q2 2025
Executive Summary
The Caesarea real estate market reaffirmed its position as Israel’s premier luxury residential enclave during the first half of 2025. Transaction volumes increased by 16.8% compared to the same period in 2024, while the average property price surged by 14.2%, reaching ₪7,950,000.
As Israel’s most exclusive coastal community, Caesarea continues to attract high-net-worth individuals seeking privacy, prestige, and world-class amenities, including its renowned golf course, private beaches, and ancient harbor.
This report analyzes key market indicators, residential and limited commercial transaction trends, and emerging developments for Q1–Q2 2025.
Market Overview
Developed under the auspices of the Rothschild Foundation through the Caesarea Development Corporation, Caesarea maintains strict architectural guidelines, expansive green spaces, and an intentionally low-density character.
These unique attributes, combined with increasing demand from wealthy domestic and international buyers, have fueled consistent price appreciation and a highly competitive real estate environment.
Key Market Statistics (Q1–Q2 2025)
- Total Transactions: 142 (↑16.8% YoY)
- Average Residential Sale Price: ₪7,950,000 (↑14.2% YoY)
- Average Price per Square Meter: ₪41,300 (↑15.8% YoY)
- Average Time on Market: 72 days (↓18 days YoY)
- Mortgage Volume: ₪724 million (↑21.7% YoY)
Residential Real Estate Analysis
Transaction Volume by Property Type
| Property Type | Transactions | YoY Change | Avg. Price (₪) | YoY Price Change |
|---|---|---|---|---|
| Villas | 67 | ↑21.8% | 11,850,000 | ↑16.4% |
| Golf Properties | 28 | ↑27.3% | 14,650,000 | ↑19.2% |
| Seafront Villas | 16 | ↑14.3% | 21,750,000 | ↑22.8% |
| Townhouses | 23 | ↑9.5% | 6,450,000 | ↑12.1% |
| Apartments | 8 | ↓5.9% | 4,250,000 | ↑7.8% |
Price Trends by Neighborhood
| Neighborhood | Avg. Price (₪) | YoY Change | Avg. ₪/m² | Avg. Time on Market |
|---|---|---|---|---|
| Golf Community | 14,650,000 | ↑19.2% | 52,800 | 65 days |
| Caesarea Harbor | 16,850,000 | ↑17.6% | 59,200 | 58 days |
| Old Caesarea | 13,250,000 | ↑15.3% | 48,400 | 69 days |
| Cluster 13 | 18,950,000 | ↑21.4% | 63,500 | 52 days |
| Neot Golf | 12,750,000 | ↑14.8% | 46,900 | 74 days |
| Seafront Properties | 21,750,000 | ↑22.8% | 72,300 | 47 days |
| Caesarea Pituach | 9,850,000 | ↑12.5% | 38,700 | 83 days |
| Southern Expansion | 7,350,000 | ↑10.2% | 32,400 | 95 days |
New Residential Development Projects
- The Fairways – 18 luxury golf-view villas, 83% sold, average ₪16,800,000
- Harbor Heights – 12 premium seafront properties, 75% sold, average ₪24,500,000
- Caesarea Gardens – 26 high-end villas, 68% sold, average ₪13,900,000
- Southern Coast Estates – 14 luxury properties, 57% sold, average ₪15,700,000
Limited Commercial Real Estate Analysis
Caesarea’s commercial sector is intentionally limited to preserve the residential nature of the community. Nevertheless, demand for premium office and retail space remains strong.
Commercial Transactions by Type
| Commercial Type | Transactions | YoY Change | Avg. Price (₪) | YoY Price Change | Avg. ₪/m² |
|---|---|---|---|---|---|
| Office Space | 7 | ↑16.7% | 4,850,000 | ↑9.3% | 24,600 |
| Retail Space | 5 | ↑25.0% | 6,250,000 | ↑11.8% | 28,900 |
| Hospitality | 3 | No change | 12,750,000 | ↑14.2% | 32,800 |
Key Commercial Areas
- Caesarea Business Park: 94% occupancy; growing demand for high-end office space.
- Harbor Commercial District: 98% occupancy driven by tourism-oriented retail and dining.
- Rothschild Center: 100% occupancy with exclusive boutique offices and retail spaces.
Investment Analysis
Return on Investment (ROI)
| Asset Class | Avg. Annual Rental Yield | Capital Appreciation (H1 2025) | Total ROI (Annualized) |
|---|---|---|---|
| Villas | 1.9% | 16.4% | 18.3% |
| Golf Properties | 1.7% | 19.2% | 20.9% |
| Seafront Villas | 1.4% | 22.8% | 24.2% |
| Commercial Properties | 4.1% | 11.8% | 15.9% |
Foreign Investment Trends
Foreign buyers accounted for 42% of transactions, a 6% increase YoY:
- North America: 45%
- Western Europe: 32%
- Russia/Eastern Europe: 15%
- Australia and South Africa: 8%
Market Drivers and Challenges
Positive Market Drivers
- Wealth Migration: Inflow of HNWIs seeking premium residences.
- Limited Supply: Strict development controls maintain exclusivity.
- Infrastructure Enhancements: Improved transport links boosting accessibility.
- Security and Privacy: Gated communities increasingly valued by global buyers.
- International Profile: Growing reputation as Israel’s elite coastal destination.
Challenges
- Regulatory Changes: New luxury property taxes impacting transaction dynamics.
- Market Concentration: Unique properties may experience longer sale cycles.
- Environmental Concerns: Coastal preservation becoming a greater priority.
- Development Constraints: Strict guidelines limiting architectural freedom.
Market Outlook
Q3–Q4 2025 Forecast
- Projected price appreciation: 11–13%
- Transaction volume growth: 8–10%
- New development activity expected to remain limited
- Luxury short-term rental rates expected to rise 15–18%
Long-Term Outlook (2026–2030)
- Ongoing harbor and historical renovations to elevate Caesarea’s prestige.
- Golf course Phase II renovation to enhance luxury appeal.
- Controlled land releases by the Caesarea Development Corporation.
- Strengthening international branding as a premier Mediterranean destination.
- Expansion of privacy and security features attracting ultra-wealthy clientele.
Ultra-Luxury Market Spotlight
The ultra-luxury sector (properties above ₪15 million) exhibited exceptional performance:
- 46 transactions (↑31% YoY)
- Average sale price: ₪19.4 million (↑24% YoY)
- Average time on market: 63 days (↓22 days YoY)
- 67% of transactions completed by foreign buyers
- Highest transaction: ₪48.5 million for a 1,200m² seafront estate
Secondary Home Market
Caesarea continues to have a significant secondary residence market:
- 38% of homes are secondary/vacation properties
- Average usage: 72 days per year
- Luxury short-term rentals averaging ₪12,500/night
- 28% YoY growth in furnished property transactions
- Rising demand for premium property management services
Methodology
Sources:
- Caesarea Development Corporation transaction data
- Israel Land Authority transaction records
- Aggregated luxury real estate agency data
- Private banking mortgage statistics
- Construction permit data and approvals
Data Collection Period: January 1, 2025 – April 26, 2025
Sample Size: 142 residential transactions and 15 commercial transactions
About the Author
This report was prepared by offplanisrael, a leading provider of real estate market intelligence, specializing in luxury and coastal property markets in Israel.
For customized investment analyses or additional reports, contact [email protected]
Disclaimer: This report is intended solely for informational purposes. Although data sources are deemed reliable, no guarantee of accuracy is provided. Real estate markets are dynamic, and past performance does not guarantee future results.
