Residential Property Price Index (RPPI) – First Quarter 2025 Relative Stability Residential Property Prices
The Palestine Monetary Authority (PMA) has released the results of the Residential Property Price Index in Palestine for the first quarter of 2025([1]). The index showed relative price stability, recording a slight decline of 0.4% compared to the previous quarter, settling at 107.2 points([2]). This performance reflects mixed trends in the sub-indices, with the house price index decreasing by 0.8% to reach 107.5 points, while the apartment price index remained stable at approximately 106.3 points. On an annual basis, the overall residential property price index declined by 2% compared to the same period in 2024.
Property specifications continue to play a fundamental role in price formation. During the first quarter of 2025, approximately 64% of the apartments offered for sale in Palestine were new units, with an average area of about 161 square meters. Around 74% of these apartments included three bedrooms, and nearly half had one or two bathrooms.
As for houses offered for sale, the average area reached about 249 square meters, with new units representing roughly 50% of the available stock. Most of these houses were characterized by larger layouts, with about 70% including more than three bedrooms and at least three bathrooms.
It is important to note that property prices are not solely determined by internal features but are also significantly influenced by external factors such as land prices, geographic location, and the characteristics of the residential neighborhood.
Figure 1: Residential Property Price index in Palestine (point)
Source: PMA (July, 2025), Residential property price index in Palestine. First 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
|
Q1
|
103.9
|
-1.71
|
116.1
|
-2.16
|
111.2
|
-1.99
|
|
Q2
|
105.4
|
1.45
|
113.6
|
-2.16
|
110.3
|
-0.80
|
|
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
|
Source: PMA (July, 2025), Residential property price index in Palestine. First Quarter 2025.
2018 Q1 =100.
([1]) The RPP Index reflects the overall trend in the average prices of apartments and houses in Palestine. For more details on the methodology and compilation process, please refer to the working paper:
"Residential Property Price Index for Palestine", PMA, 2021, available on the PMA website: www.pma.ps.
([2]) Data for the second quarter of 2025 excludes the Gaza Strip due to the ongoing Israeli aggression that began in October 2023.
101