The Residential Property Price Index (RPPI) – First Quarter 2024

A slight increase in the Index’s Value

PMA has released the findings of its Residential Property Price Index in Palestine (RPPI) for the first quarter of 2024^([1]), indicating a slight recovery in property prices in Palestine by around 1.2% compared to the previous quarter, reaching 109.3 points^([2]), amid a relative improvement in its two constituent sub-indices. The Houses Price Index increased by about 0.7% to stabilize at 111.1 points, while the Apartment Price Index rose by 2.2%, reaching 106.5 points. On the other hand, the index declined annually by about 1.7% compared to the corresponding quarter in 2023.

This relative recovery comes in light of the resurgence of individuals' interest in the real estate market, albeit at a slower pace, among a general state of uncertainty prevailing locally, due to the Israeli aggression and its various repercussions, which affected the West Bank, resulting in a weakening of the confidence of consumers and investors alike.

Hence, besides supply and demand, the specification of the property for sale plays a fundamental role in determining its price. During the first quarter of 2024, residential apartments offered for sale were characterized (approximately 64%) as new residential units, with an average area of about 160 m², mostly comprising three bedrooms and three bathrooms, in addition to at least one balcony. As for houses, the average area of those offered for sale was about 235 m², with new houses accounting for approximately half of them, and the majority containing more than three bedrooms and at least three bathrooms.

Properties are also affected by other specifications not mentioned above, most notably the price of the land on which the property is situated, in addition to the geographical location and residential neighborhood.