The Residential Property Price Index (RPPI) – Fourth Quarter 2025
Continued Stability and Cautious Growth in the Real Estate Market
The Palestine Monetary Authority released the results of the Residential Real Estate Price Index in Palestine for the fourth quarter of 2025 ([1]). The overall index showed continued stability compared to previous quarters, recording a slight increase of 0.63% compared to the third quarter of the same year, reaching 108.2 points ([2]), in line with the performance of the sub-indices. The House Price Index rose by 0.83% to reach 108.4 points, while the Apartment Price Index remained stable at 107.8 points. On an annual basis, the overall index increased by 0.6% compared to the fourth quarter of 2024.
Undoubtedly, the characteristics of a property offered for sale remain a key factor in determining its price. During the fourth quarter of 2025, data showed that 59.9% of apartments offered for sale in Palestine were new apartments, with an average area of 158.7 square meters. The results also indicated that approximately 54.9% of these apartments included one or two bathrooms, while nearly 70% contained three or more bedrooms, in addition to having a balcony.
As for houses offered for sale, their average area reached approximately 235 square meters, with 53.7% being newly built houses. The data further showed that around 70% of these houses included three or more bedrooms, in addition to more than three bathrooms. It is worth noting that real estate prices are not only affected by internal characteristics, but that other factors also play a pivotal role in determining prices, most notably the price of the land on which the property is built, the geographic location, and the nature of the residential neighborhood.
Figure 1: Residential Property Price index in Palestine (point)
Source: PMA (January, 2026), Residential property price index in Palestine. Fourth Quarter 2025.
2018 Q1 =100.
Table 1: Residential Property Price index in Palestine (point)
|
Period
|
Apartments
|
Houses
|
Overall
|
|
Index
|
Percent change (%, q o q)
|
Index
|
Percent change (%, q o q)
|
Index
|
Percent change (%, q o q)
|
|
2023
|
Q3
|
105.2
|
-0.15
|
111.2
|
-2.16
|
108.8
|
-1.38
|
|
Q4
|
104.2
|
-0.95
|
110.3
|
-0.81
|
108.0
|
-0.72
|
|
2024
|
Q1
|
106.5
|
2.14
|
111.0
|
0.67
|
109.3
|
1.21
|
|
Q2
|
106.3
|
-0.11
|
110.1
|
0.79-
|
108.7
|
0.54-
|
|
Q3
|
106.1
|
0.19-
|
109.3
|
0.80-
|
108.1
|
0.57-
|
|
Q4
|
106.3
|
0.10
|
108.4
|
-0.79
|
107.6
|
-0.46
|
|
2025
|
Q1
|
106.4
|
0.16
|
107.5
|
0.80-
|
107.1
|
0.44-
|
|
Q2
|
106.9
|
0.42
|
106.7
|
0.79-
|
106.8
|
0.34-
|
|
Q3
|
107.4
|
0.55
|
107.6
|
0.82
|
107.5
|
.071
|
|
Q4
|
107.8
|
0.32
|
108.4
|
0.83
|
108.2
|
0.63
|
Source: PMA (January, 2026), Residential property price index in Palestine. Fourth Quarter 2025.
2018 Q1 =100.
([1]) The RPP Index represents the overall trend of the average prices of apartments and houses in Palestine. For more information about the methodology, please see the working paper “Residential Property Price Index for Palestine”, PMA 2021 published on the PMA website, www.pma.ps.
([2]) The data does not include Gaza Strip due to the ongoing Israeli attack, since October 2023.
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