How Much Does It Cost to Buy an Apartment in Jerusalem?

In Short: What You Need to Know

Jerusalem real estate prices in 2025 remain high due to strong demand and limited supply.
To buy an apartment in Jerusalem, expect $500K–$1.2M for standard units, $1.5M+ for luxury homes.
Foreign buyers can purchase property with up to 50% mortgage and ~8% tax.
Total extra costs: about 10–12% (lawyer, agent, taxes, fees).
Selling Israel helps international clients find and buy apartments in Jerusalem and Efrat easily.

A Complete 2025 Guide for Foreign and Local Buyers

If you’re planning to buy an apartment in Jerusalem, you’re not alone — the city’s real estate market continues to attract buyers from around the world.
Whether you’re relocating, investing, or dreaming of a second home, understanding Jerusalem real estate prices in 2025 is essential before taking the leap.

This guide breaks down average property costs, neighborhood comparisons, and key tips for foreign buyers, helping you make confident real estate decisions.

Jerusalem Real Estate Prices 2025 – Cost to Buy an Apartment in Jerusalem

Jerusalem remains one of the most dynamic and high-demand real estate markets in Israel.
Prices have risen steadily over the past decade, especially in central and new luxury neighborhoods.

Property Type	Average Price (USD)	Ideal For
1-Bedroom Apartment	$500,000 – $750,000	Singles, couples, pied-à-terre
2–3 Bedroom Apartment	$750,000 – $1.2M	Families and long-term residents
Luxury Apartment / Penthouse	$1.5M – $4M+	High-end buyers and investors
Private Home / Villa	$1.8M – $6M+	Large families, luxury lifestyle seekers

Tip: Properties with views of the Old City, private outdoor space, or parking command the highest prices.

Where to Buy an Apartment in Jerusalem – Top Neighborhoods

Each Jerusalem neighborhood has its own character, price range, and community. Here’s where most of our buyers at Noam Homes are investing today:

German Colony & Baka

Elegant, green, and international — these areas attract English-speaking families looking for charm and proximity to cafes and schools.
Average: $11,000–$14,000 per sqm.

Arnona & Talpiot

Modern buildings, convenient access, and better value for money compared to city center.
Average: $8,000–$10,000 per sqm.

Rehavia & Shaarei Chesed

Prestigious, central, and always in demand. Ideal for buyers seeking timeless value.
Average: $13,000–$17,000 per sqm.

Efrat (Just outside Jerusalem)

A family-oriented community only 20 minutes away. Offers larger homes, gardens, and great value per square meter.
Average house price: $800,000–$1.5M.

Can Foreigners Buy Property in Jerusalem?

Yes — foreign buyers are fully allowed to purchase real estate in Jerusalem.
Israel’s property laws make it possible for non-citizens to own property, though there are some conditions to consider:

✅ No citizenship required to buy.
🏦 Mortgages available up to 50% of the property value.
🧾 Purchase tax (Mas Rechisha) for non-residents: typically 8%.
📜 Ownership is usually freehold or long-term leasehold (from the Israel Land Authority).

💡 Pro Tip: Work with a trusted real estate agent and English-speaking lawyer to simplify the buying process and ensure proper registration.

Additional Costs to Expect

Beyond the property price itself, plan for these extra expenses when you buy an apartment in Jerusalem:

Cost Type	Typical Amount
Purchase Tax (non-residents)	8%
Lawyer Fees	1% + VAT
Agent Commission	2% + VAT
Mortgage & Bank Fees	0.25%–1%
Translation & Notary	Variable

For a $1M property, total transaction costs are typically around $100,000–$120,000.

Is It a Good Time to Buy in 2025?

Despite global market fluctuations, Jerusalem remains a stable and appreciating market.
Demand from both local and international buyers continues to outpace supply, particularly in premium areas.

Many clients buying through Selling Israel see Jerusalem not only as a real estate investment — but also as a long-term lifestyle and emotional investment in the heart of Israel.

Why Work with Selling Israel?

At Selling Israel, we specialize in helping foreign buyers purchase homes and apartments in Jerusalem.
We provide:

Tailored property searches
Virtual and in-person viewings
Expert legal and financial guidance
Seamless support from offer to closing

✨ Whether you’re abroad or already in Israel, our team makes it easy to find your home in Jerusalem.

👉 Explore listings: www.noamhomes.com

Curious about the next steps? Contact us today to learn more about how we can help you navigate the Israeli real estate market with confidence and ease.