Press Release Residential Property Price Index (RPPI) – Second Quarter 2025 Real Estate Market Maintains Stability
The Palestine Monetary Authority (PMA) has released the results of the Residential Real Estate Price Index in Palestine for the second quarter of 2025([1]), indicating relative stability in residential property prices. The overall index recorded a slight quarterly decline of approximately 0.34%, settling at 106.8 points([2]), amid mixed performance across sub-indices. The house price sub-index declined by 0.79% to reach 106.7 points, while the apartment price sub-index remained stable at 106.9 points. On an annual basis, the overall index registered a 1.8% decrease compared to the second quarter of 2024.
Property specifications remain a key determinant of pricing. During Q2 2025, approximately 57% of the apartments offered for sale in Palestine were newly built, with an average size of 161 square meters. The data further show that about half of these apartments included two bathrooms, while more than two-thirds featured at least three bedrooms and one or more balconies.
As for houses offered for sale, the average size was around 269 square meters, with 63% being newly built. Around two-thirds of these homes included three or more bedrooms and at least three bathrooms.
It is worth noting that property prices are influenced not only by internal specifications but also by a range of external factors, most notably: the price of the land on which the property is built, its geographical location, and the nature of the surrounding neighborhood and infrastructure.
Figure 1: Residential Property Price index in Palestine (point)
Source: PMA (July, 2025), Residential property price index in Palestine. Second 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-
|
|
Q2
|
106.9
|
0.42
|
106.7
|
0.79-
|
106.8
|
0.34-
|
Source: PMA (July, 2025), Residential property price index in Palestine. Second 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.
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