Katamon, Jerusalem.
The Honest Guide from the Tel Aviv Property Index
Old Katamon is the heart of Anglo Modern Orthodox Jerusalem: a shul on every other corner, stone villas and a strong community. The reputation skips the gap between the villas and the plain blocks, the parking, and the huge renewal projects starting next door in Gonenim.
Where it is
Old Katamon lies in the south-west of central Jerusalem. The German Colony and Emek Refaim are on its eastern edge, with Talbiyeh and Rehavia to the north. To the south and west are the post-1948 estates known as the Katamonim, or Gonenim.
The main streets include Rachel Imeinu, HaPalmach, Hizkiyahu HaMelech and Kovshei Katamon. San Simon Park and the monastery grounds give the southern part of the area a large green space. Park HaMesila (the Railway Park) runs close by to the south and east.
Labels are loose. Agents use "Katamon" for Old Katamon proper, for nearby Kiryat Shmuel, and sometimes for the edge of Gonenim. Check the exact block before comparing prices.
From Arab garden suburb to Anglo heartland
Katamon was built in the 1920s to 1940s, mainly by Arab Christian families. They built stone villas with gardens, balconies and arched windows. The Greek Orthodox San Simon monastery stood at its southern end.
In April and May 1948 the area saw heavy fighting, including a battle at the San Simon monastery. The Arab residents left or fled, and the area came under Israeli control. The state took over the houses as absentee property and let them to Jewish immigrants.
In the 1950s and 60s the state built the Katamonim housing estates to the south-west. From the 1970s, Old Katamon began to gentrify, and English-speaking immigrants arrived in large numbers from the 1980s. Today it is one of the best-known Anglo neighbourhoods in Israel.
What it is actually like today
Old Katamon is quiet, leafy and largely residential. Daily shopping sits on a few streets, with Emek Refaim a short walk east. There are small supermarkets, bakeries and cafés, but it is not a nightlife area.
The synagogue density is remarkable. Well-known congregations such as Ramban and Yakar sit alongside many small minyanim, several run largely in English. On Shabbat the streets fill with families walking between shul and lunch.
The negatives are practical. Parking is hard, and pavements are narrow on many streets. Many 1950s–70s blocks have no lift and no mamad, and some have not been renovated in decades.
Gonenim and the renewal wave
The Katamonim estates were built fast and cheaply to house immigrants. For decades they carried a reputation for poverty and neglect. They are now among the main targets for urban renewal in Jerusalem.
In December 2022, two pinui-binui plans in Gonenim totalling about 880 homes were deposited with the District Planning Committee. Further Gonenim schemes have been approved since. Late in 2025, local media reported a renewal scheme there of about 1,200 homes.
In May 2026 the city approved six more pinui-binui plans, part of a push for tall buildings near future light rail routes. Expect many years of demolition and construction in the area. The mix of residents will also change as new flats are sold on the open market.
For buyers this means opportunity and risk. A flat in a building inside an approved scheme can gain a new, larger home with a mamad and parking. But timelines in pinui-binui are long, and a project can stall at any stage.
Old Katamon: conservation and the TAMA 38 aftermath
Old Katamon itself is not a tower-block area. Many Arab-era houses are protected, and conservation rules limit extensions and new floors. Some 1960s blocks were strengthened and extended under TAMA 38.
TAMA 38 has now expired in most of the country, with the transitional deadline passing on 18 May 2026. Live projects continue only with a valid permit. New schemes must use the "Shaked Alternative" (amendments 136 and 139 to the Planning and Building Law) or pinui-binui.
If you are buying into a building that planned a TAMA 38 project, check whether a permit was issued in time. If not, the extra flats, lift and mamad that sellers may mention could be much further away than they suggest.
Who lives here
Old Katamon is dominated by Modern Orthodox families, many of them English-speaking. There are also secular and traditional Israeli households and older residents who have lived here for decades. Young couples and students rent in the smaller flats.
Gonenim is more mixed and less affluent. It includes long-time Mizrahi families, newer immigrants, and a growing number of young buyers drawn by lower prices and renewal plans. Its character will shift as schemes complete.
As prices have risen, many young Anglo families now buy in Gonenim, Arnona or further out instead. Some residents worry that Old Katamon is becoming an area for older and wealthier buyers.
Prices and what you get
Registered sales put Old Katamon's median at ₪3.38m and about ₪47,200 per m², level with Baka and some 17% above the Katamonim (Gonenim) next door.
| Neighbourhood | Median price | ₪/m² | Registered deals |
|---|---|---|---|
| Old Katamon | ₪3,375,000 | ₪47,222 | 285 |
| Katamonim (Gonenim) | ₪2,700,000 | ₪40,484 | 681 |
| German Colony (Emek Refaim) | ₪4,640,000 | ₪55,696 | 103 |
| Baka | ₪3,457,500 | ₪46,947 | 268 |
| Jerusalem (city) | ₪2,723,500 | ₪35,215 | All deals |
Registered sales, Jan 2023 – Jun 2026 (the Katamonim and city figures run to Aug 2026).
Recent registered deals in Old Katamon:
- HaLamed He St: 4 rooms, 97 m², ₪5,600,000 (Jun 2026)
- HaGdud HaIvri St: 3 rooms, 78 m², ₪3,408,000 (Jun 2026)
- Rachel Imeinu St: 4 rooms, 74 m², ₪3,500,000 (Jun 2026)
- Reish Lakish St: 3 rooms, 73 m², ₪4,000,000 (May 2026)
Restored villas and garden apartments go well above the median, and a 1960s walk-up without a lift can sell well below. The Katamonim are markedly cheaper and far more liquid, though flats in approved renewal schemes carry a premium. Listing prices often run ahead of registered sales, so check recent deals on the same street before you offer.
Old Katamon's median per m² rose from about ₪44,200 in 2023 to about ₪49,300 in 2025. Nationally, though, prices fell about 2% in the year to April–May 2026 on the CBS index, and older blocks without a shelter, lift or parking are the hardest to sell in a slower market.
Buying here: what to check before you sign
Registration and land.Many Katamon properties were absentee property and are now Israel Land Authority leasehold, or are registered through a housing company. Get a full Tabu extract and check the lease and any consent fees.
Renewal status.In Gonenim especially, ask whether the building is in a deposited or approved pinui-binui plan. Get the developer agreement and check how many owners have signed. Ask what the plan gives you in size, parking and rent during building.
Off-plan protections.If you buy a new flat in a scheme, payments above 7% of the price must be secured under s.2 of the Sale (Apartments) (Assurance of Investments) Law 5735-1974. Delay compensation runs under s.5A of the Sale (Apartments) Law 5733-1973, on the post-Amendment 9 scale for contracts from 7 July 2022. The first 20% is unlinked to the index, and at most 50% of each later payment is linked.
TAMA 38 promises.If a seller mentions a TAMA 38 upgrade, ask for the permit. Without a valid permit before the deadline, it now needs a new route and a new approval.
Shelter and access.Check whether the home has a mamad or a usable shelter, and how many stairs there are. Many walk-ups here have neither lift nor shelter, which matters for older parents and young children.
Conservation and illegal additions.For Arab-era houses, check any conservation listing. Compare the building file with added rooms and closed balconies, as unpermitted work can block a mortgage.
Tax and finance.An oleh within the Reg 12A window pays about ₪2,606 in purchase tax on ₪2.5m, or ₪10,106 on ₪4m. A resident buying a single home pays about ₪20,538 or ₪95,538. A foreign resident or additional-home buyer pays 8% up to ₪6,055,070 (about ₪320,000 on ₪4m). Mortgages are capped at 75% for a single dwelling under Directive 329.
Who it suits
Works well for
- Modern Orthodox families who want a wide choice of shuls within walking distance
Harder to recommend for
- Secular families who may feel out of step with the area's religious rhythm
- Buyers who need parking or a lift at a modest price
- Anyone who wants a new home with a mamad now, without a long wait
- Buyers who find living beside years of demolition and building hard to bear
The verdict
Old Katamon deserves its reputation as an Anglo Modern Orthodox home. Its community, shuls and streets make settling in easier than almost anywhere in Israel. That is why it costs what it does.
The real story now is next door. Gonenim is being rebuilt, and it offers a cheaper route into the area for those who accept the wait and the risk. Old Katamon itself is a mature market where the building matters more than the name.
In Katamon you pay for the community; in Gonenim you pay with patience.
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