The Residential Property Price Index (RPPI) – Third Quarter 2024
Stability with a Tendency for Decline in Index Value
Palestine Monetary Authority (PMA) has released the results of the Residential Property Price Index in Palestine (RPPI) for the third quarter of 2024([1]). These results indicate stability in property prices with a slight downward trend. The index fell by approximately 0.57% compared to the previous quarter, reaching 108.1 points([2]), due to a minor drop in its sub-indices. The Houses Price Index fell by around 0.80% to 109.3 points, while the Apartment Price Index decreased by about 0.19% to 106.1 points. Additionally, the index declined by about 0.65% compared to the corresponding quarter in 2023.
It is worth noting that the specifications of the property to be sold play a fundamental role in determining its price. During the third quarter of 2024, approximately 62.1% of the apartments offered for sale in Palestine were new, with an average size of about 157 m2. Half of these apartments had one or two bathrooms, and around two-thirds had at least three bedrooms and a balcony. As for houses offered for sale, the average size was about 248 m2, with nearly half being new. Moreover, half of these houses had more than three bedrooms and at least three bathrooms.
Properties are also influenced by other specifications not mentioned above, most importantly the price of the land on which the property is built, as well as the geographical location and the residential neighborhood.
([1]) The RPP Index represents the general trend of the average prices of apartments and houses in Palestine. For more details on the methodology and mechanism used to prepare the index, please refer to the working paper “Residential Property Price Index for Palestine”, PMA 2021 published on the PMA website, www.pma.ps.
([2]) The data for the third quarter of 2024 does not include the Gaza Strip, which has suffered from unprecedented Israeli aggression since October 2023.
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