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

Relative Stability in Residential Real Estate Prices

PMA has released the results of the Residential Property Price Index in Palestine for the fourth quarter of 2024^([1]). The finding shows relative stability in the index, with tolerance of a slight decline. The RPPI index fell by approximately 0.46% compared to the previous quarter, reaching 107.6 points^([2]). This was attributed to the disparity in the performance of sub-indices. Specifically, the house price index decreased by about 0.79%, reaching 108.4 points, while the apartment price index remained stable, at about 106.3 points. Results indicate that the performance of RPPI on an annual basis does not differ, where the index was relatively stable (a slight decline by approximately 0.38%) compared to the corresponding quarter of 2023.

The specifications of the property being sold play a fundamental role in determining its price. During the fourth quarter of 2024, the residential apartments offered for sale in Palestine were characterized by the fact that around 65% of them were new, with an average size of about 156 square meters. Half these apartments contained one or two bathrooms, while over two-thirds included three bedrooms and at least one balcony.

As for houses offered for sale, the average size reached approximately 249 square meters, with new houses comprising nearly half of the supply. Two-thirds of these houses featured more than three bedrooms and at least three bathrooms. Moreover, real estate prices are influenced by several other factors, most notably the price of the land on which the property is built, as well as its geographical location and residential neighborhood.