Netanya Real Estate Market Report: Q1 2025
The real estate market in Netanya displayed remarkable strength during the first quarter of 2025. From January to March, the city recorded a 14.9% increase in transaction volume compared to the same period in the previous year. The average residential property price rose to ₪2,730,000, reflecting a 12.1% year-over-year gain, as Netanya continued to cement its status as one of Israel’s most dynamic coastal real estate markets.
Roughly 1,260 residential transactions were completed during the quarter, with buyers paying an average of ₪24,400 per square meter—a notable 13.3% jump from Q1 2024. The typical time for a property to sell shortened to 53 days, underscoring the competitive environment among both local and international purchasers. Mortgage financing remained active as well, with an estimated ₪3.3 billion in loans issued to support acquisitions across the city.
Apartments dominated sales activity, particularly in high-demand areas such as Ir Yamim, Kiryat Hasharon, and Ramat Poleg. These properties averaged ₪2,440,000, while larger and more exclusive units, such as penthouses and garden apartments, saw even stronger growth. Penthouses, popular among foreign buyers and affluent domestic investors, achieved an average sale price of ₪6,820,000, up nearly 17% from the previous year. Villas, concentrated in beachfront and premium neighborhoods, averaged ₪5,900,000.
Neighborhood-level analysis revealed that Netanya's cliffside beachfront communities continued to command the city’s highest prices, with homes in these areas averaging ₪7,820,000. South Beach and North Beach followed closely behind, driven by ongoing luxury development projects and international buyer demand. Established districts like Ir Yamim and Kiryat Hasharon showed solid growth as well, appealing to families and young professionals seeking high-quality housing near amenities and transportation hubs. Even traditionally affordable areas such as Dora and Neot Herzl saw steady appreciation, driven by urban renewal initiatives and spillover demand from adjacent neighborhoods.
The city's construction sector was particularly active during the first quarter. Major developments like Sea Opera Towers, Blue Bay Residences, and Marina View moved rapidly toward sell-out status, particularly among luxury buyers seeking oceanfront living. Meanwhile, projects such as Poleg Heights and Kiryat Hasharon Gardens provided important mid-market housing stock for Netanya’s growing family demographic. Across the board, new construction projects achieved strong sales absorption rates, especially those offering proximity to the beach or commercial hubs.
Urban renewal initiatives were another powerful driver of Q1 momentum. Active Pinui-Binui projects replaced aging structures with modern residential towers, while TAMA 38 upgrades enhanced earthquake safety and livability in older buildings. In the city center, large-scale revitalization programs brought new life to commercial corridors and residential streets, attracting younger buyers and investors seeking value opportunities in central Netanya.
Netanya’s commercial real estate sector also enjoyed positive results in early 2025. Office space, driven by the expansion of the Netanya Business District and Tech Park Netanya, saw rising demand, particularly from high-tech companies and business service providers. Retail space near the promenade and in developing residential neighborhoods experienced similar growth, with occupancy rates exceeding 80% in newly launched projects. Tourism-related properties, including boutique hotels and serviced apartments, surged in value as visitor numbers rebounded sharply during the early months of the year.
Investor returns in Q1 2025 were attractive across most segments. Residential properties generated gross rental yields of approximately 3.4%, with beachfront properties commanding higher rents and premium sale prices. Commercial real estate outperformed residential yields, particularly in hospitality and mixed-use projects, where annualized returns approached 7% in some cases. Foreign investors, particularly French and Russian buyers, continued to show strong interest in Netanya, accounting for an estimated 35% of luxury market transactions during the quarter.
The city’s growing appeal as a tourism and second-home destination further fueled market momentum. Vacation property purchases increased notably during Q1, with many buyers targeting new or recently renovated apartments within walking distance of the beach. Short-term rental profitability remained strong, particularly in Ir Yamim, Marina Village, and the cliffside districts, where seasonal occupancy rates exceeded 90%. Property management services catering to absentee owners saw rising demand as well, reflecting the growing number of foreign-owned residences entering the rental pool.
Several factors continued to support Netanya’s vibrant market conditions. Extensive investment in public infrastructure, including coastal promenade enhancements and improved highway access to Tel Aviv, made the city even more accessible and desirable. Expansion of the local business district created new employment opportunities, helping to retain young professional households. Additionally, Netanya’s price advantage over Tel Aviv—where comparable properties often cost nearly double—remained a compelling draw for buyers seeking value without sacrificing coastal lifestyle benefits.
Nevertheless, a few challenges emerged. Rapid population growth placed pressure on transportation and utility systems, while the pace of construction occasionally outstripped municipal planning capacity. Seasonal swings in demand affected certain property segments, particularly those reliant on summer tourism. Rising construction costs, driven by global material price increases, also threatened to impact future project feasibility, particularly in mid-market housing developments.
Looking ahead to Q2, the market outlook remains optimistic. Residential prices are expected to rise between 9% and 11% through mid-year, while transaction volume is likely to continue expanding at 14–16%, particularly in the beachfront, northern, and city center districts. Developers are expected to accelerate project launches to meet strong demand, and rental rates, especially for high-quality and well-located properties, are forecasted to climb by another 11–13% over the next few months.
This analysis was prepared using transaction data gathered from January 1 to March 31, 2025, sourced from the Israel Land Authority, Netanya Municipality, leading real estate firms, mortgage banks, and tourism accommodation surveys. In total, approximately 1,260 residential and 162 commercial transactions were analyzed for this report.
Prepared by www.offplanisrael.com, specialists in Israeli real estate market research. For tailored investment strategies or detailed property insights, please contact them.
Disclaimer: This document is intended for informational purposes only and should not be construed as investment advice. All data is believed to be reliable but is subject to change based on market conditions.