Nahariya Real Estate Market Insights: Q1 2025 Report
Executive Overview
The Nahariya property market exhibited solid performance in the first quarter of 2025, with transaction activity rising by 16% compared to Q1 2024. Average property values increased by 6.9%, reaching ₪1,960,000. This report examines residential and commercial market trends, transaction statistics, and investment patterns shaping Nahariya’s real estate landscape during Q1 2025.
Market Snapshot
Located along Israel’s northern coastline, Nahariya continues to attract buyers with its blend of Mediterranean living, upgraded infrastructure, and competitive pricing relative to central Israel. The city’s momentum remained steady through the first three months of the year.
Key Market Metrics (January–March 2025)
Total Property Sales: 412 (+16% YoY)
Average Residential Price: ₪1,960,000 (+6.9% YoY)
Average Price per Square Meter: ₪16,050 (+8.7% YoY)
Average Days on Market: 64 days (12 days faster YoY)
Total Mortgage Volume: ₪610 million (+19% YoY)
Residential Sector Breakdown
Sales Activity by Property Type
Apartments remained the core of residential transactions, with 289 units sold during Q1 2025—13% higher than the same period last year. The average apartment price reached ₪1,730,000, representing a 6.5% increase.
Detached houses experienced heightened demand as well, with 68 transactions, a 19% rise year-over-year, and an average price of ₪3,220,000 (+8.7%).
The penthouse segment showed notable growth with 21 sales (+32%) and an average price of ₪4,050,000 (+11.8%). Duplexes recorded 14 transactions (+9%) at an average price of ₪2,870,000 (+7.9%).
Neighborhood Pricing Trends
Beachfront: Maintained its premium status with average prices hitting ₪3,900,000 (+13.8%) and a price per square meter of ₪32,100. Properties here sold rapidly, averaging 42 days on the market.
City Center: Average sales prices reached ₪1,860,000 (+6.0%) with ₪17,000 per square meter.
North and South Nahariya: Average home prices were ₪1,730,000 (+5.5%) and ₪1,660,000 (+4.5%) respectively.
Ga’aton River Vicinity: A continued hotspot for buyers, with average prices of ₪2,320,000 (+11.2%) and swift turnover at 50 days.
Eastern Neighborhoods: More affordable at ₪1,400,000 (+2.9%), but sales required longer marketing periods, averaging 80 days.
New Residential Developments
Q1 2025 saw notable sales momentum in several projects:
Sea View Towers: 55 luxury units sold, averaging ₪28,200/m²
Nahariya Gardens: 31 mid-market apartments sold at ₪16,600/m²
Park Heights: 16 penthouses reserved, averaging ₪19,000/m²
Coastal Villas: 7 detached homes sold for an average of ₪4,280,000
East Nahariya Complex: 102 affordable units sold at an average of ₪13,200/m²
Commercial Sector Review
Transaction Activity
While smaller in volume, commercial property activity remained consistent during Q1:
Retail Properties: 11 sales completed (+7%) at an average price of ₪1,820,000 and ₪14,100 per square meter.
Office Spaces: 5 transactions (+4%), achieving ₪2,310,000 on average.
Industrial Units: Slower activity with only 2 transactions (stable YoY), although average prices edged up to ₪3,150,000 (+1.0%).
Commercial Developments
Ga’aton Business Center: 4,200m² of space; 58% leased by end of Q1
Nahariya Tech Hub: Achieved 40% pre-leasing for its first office building
Coast Mall Expansion: Construction progressed, with completion expected by Q4 2025
Investment Landscape
Rental Yields and Returns
Residential Properties:
Apartments offered a 3.7% rental yield with 6.5% capital appreciation, totaling a projected 10.2% annual ROI.
Houses generated a 2.8% rental return, but stronger value gains of 8.9%, for a total ROI of 11.7%.Commercial Properties:
Retail and office properties yielded around 5.5%, while price appreciation remained modest at 2.1%, giving investors an 7.6% annualized return.
Foreign Buyer Trends
Foreign investors accounted for 16% of all residential purchases during Q1.
Breakdown by Nationality:
French buyers: 41%
North American buyers: 32%
UK buyers: 15%
Other Europeans: 12%
Market Forces
Positive Drivers
Transportation Improvements: Faster access to central Israel thanks to new Highway 6 connections.
Workplace Flexibility: The remote work trend continued to fuel migration to coastal cities like Nahariya.
Tourism Rebound: Rising tourism added demand for short-term rental properties.
Tax Incentives: Special benefits for new residents in northern cities supported relocation decisions.
Emerging Challenges
Higher Construction Costs: Building expenses climbed by roughly 11% in Q1 alone.
Mortgage Rate Pressures: Lending rates increased slightly, with averages moving from 3.7% to 4.2%.
Land Scarcity: Premium plots along the beachfront and city center grew increasingly competitive.
Forward-Looking Projections
Forecast for Q2 2025
Expected price growth of 3–4%
Stable transaction volumes, with minor seasonal upticks
Acceleration of new housing project announcements
Ongoing rental price increases in popular neighborhoods
Long-Term Expectations
Nahariya remains well-positioned for future expansion, supported by:
Beachfront redevelopment initiatives
Planned light rail project linking Nahariya to Haifa (target 2028)
Expansion of high-tech business hubs
Growth in medical tourism anchored by Western Galilee Medical Center
Methodology
Data for this report was drawn from:
Israel Land Authority sales records
Planning and construction permit databases from the Nahariya Municipality
Aggregated sales data from leading real estate agencies
Mortgage market reports from major lenders
Data Collection Period: January 1–March 31, 2025
Sample Size: 412 residential and 18 commercial transactions