Your next payment is probably higher than your contract says.
The Madad, Israel's construction cost index, updates on the 15th of every month. If you signed a new construction contract in Israel, most of your remaining payments are recalculated against it. Here is the complete history table and a calculator to show you exactly what that means for your purchase.
By Jeff Balsam, CEO & Founder, Adesco · Updated monthly from CBS official data
Madad index - last 3 years
Current Madad
140.8
February 2026
Month-on-month
+0.20%
vs. January 2026
Last 12 months
+2.2%
cumulative rise
Red = costs rose (adds to your payments)·Green = fell
The Madad (מדד תשומות הבנייה) is Israel's monthly construction cost index, published by the Central Bureau of Statistics on the 15th of every month. Most new construction contracts link a portion of the purchase price to it - meaning the shekel amount you owe at each payment milestone is recalculated against the current index, not the value when you signed. Below is the full history table and a free calculator showing exactly what that means for your purchase.
How does the Madad affect my property payments?
When you signed your purchase contract, the payment schedule showed specific shekel amounts for each milestone. If your contract is Madad-linked (most new construction contracts are), those amounts are not fixed. Each payment is recalculated when it falls due, using a formula based on:
- The Madad value at the time you signed
- The current Madad value at the time of payment
- The percentage of the payment that is index-linked
The result: a payment that was listed as ₪500,000 in your original contract schedule may be ₪520,000 or ₪540,000 by the time the milestone falls due.
How the calculation works - step by step
Find your linked portion
Linked portion = Contract payment × index-linked %
Example: ₪500,000 × 70% = ₪350,000 linked · ₪150,000 fixed
Find the Madad change since signing
Madad change = (Madad now ÷ Madad at signing) − 1
Example: (142.0 ÷ 120.0) − 1 = +18.3%
Calculate what the Madad added
Madad extra = Linked portion × Madad change
Example: ₪350,000 × 18.3% = ₪64,167 extra
Total payment due in this example (illustrative values - use your contract figures and the calculator below)
₪150,000 (fixed) + ₪350,000 (linked base) + ₪64,167 (Madad extra) = ₪564,167 total - vs ₪500,000 in the original contract.
What percentage of my payment is index-linked?
This varies by contract. Check the indexation clause in your purchase agreement with your lawyer. Tax payments (Mas Rechisha, Mas Shevach) and professional fees are typically not index-linked. Only developer milestone payments in the purchase price are usually subject to Madad indexation.
Israel Madad Index - Full History Table
Published by the CBS on the 15th of every month at 6:30 PM Israel time. This table updates automatically from the live CBS data feed.
Last updated: March 16, 2026
Source: Israel Central Bureau of Statistics (cbs.gov.il) · Base: July 2011 = 100
| Month | Index Value | Monthly Change | YTD Change |
|---|---|---|---|
| February 2026 | 140.8 | +0.20% | +2.20% |
| January 2026 | 140.5 | +0.10% | +2.50% |
| December 2025 | 140.4 | +0.10% | +5.10% |
| November 2025 | 140.2 | +0.60% | +5.30% |
| October 2025 | 139.4 | +0.10% | +5.00% |
| September 2025 | 139.2 | 0.00% | +5.10% |
| August 2025 | 139.2 | +0.40% | +5.50% |
| July 2025 | 138.7 | +0.10% | +5.30% |
| June 2025 | 138.6 | 0.00% | +5.60% |
| May 2025 | 138.6 | +0.10% | +6.00% |
| April 2025 | 138.4 | +0.10% | +6.40% |
| March 2025 | 138.3 | +0.40% | +6.10% |
Cumulative Change Summary
Last 12 months
+2.2%
Last 24 months
+8.3%
Last 36 months
+9.5%
Since Jan 2020
+22.9%
How much has the Madad added since you signed?
Enter three things from your contract: when you signed, what your remaining payments total (at contract price, before Madad), and what percentage is index-linked. The calculator shows what the Madad has added on top of those contract amounts since your signing date.
When did you sign your purchase contract?
The date your purchase agreement was signed - not the date you paid your deposit.
Can you reduce your exposure to the Madad?
Negotiate a Madad cap
Ask your lawyer to negotiate a cap on how much the Madad can increase your total purchase price. A cap limits your exposure regardless of how much the index rises during construction. Caps are not standard but are accepted by some developers, particularly when the buyer is paying a significant deposit upfront.
Accelerate payments where possible
The Madad adjusts each payment at the time it falls due. A payment you make early is calculated against a lower index value than one you make later. If your contract allows accelerated payments and you have the liquidity, discuss the option with your lawyer and your currency advisor.
Know which payments are linked and which are not
Tax payments (Mas Rechisha, Mas Shevach), lawyer fees, and municipal charges are typically not Madad-indexed. Only developer milestone payments are usually linked. Knowing exactly which payments carry the indexation risk helps you plan your budget more precisely.
Convert currency ahead of milestone dates
If you are paying in foreign currency, you carry both exchange rate risk and Madad risk simultaneously. Converting ahead of known milestone dates removes the currency risk from the equation. An Adesco advisor can help you think through the timing of each conversion relative to your payment schedule.
Why Adesco publishes this data
Adesco has been serving foreign buyers of Israeli real estate since 2013. We built and maintain this tool because Madad confusion costs buyers money - either they are blindsided by payment amounts their contract didn't show, or they overpay at the bank transferring funds to cover them. The history table updates automatically from the CBS data feed within hours of each monthly publication.
Adesco is licensed by the Israel Capital Market, Insurance, and Savings Authority. License 57103. We process currency transfers and Madad-adjusted property payments for foreign buyers across the United States, United Kingdom, France, Canada, Switzerland, Australia, and Poland.
“Adesco provided the perfect solution assisting in paying for our home purchase in Israel. They were kind, quick, and efficient. They are well versed in all the legal requirements and helped us make this a very smooth process.”
“It made me feel like a human being that when I had questions, J Jacobs responded to them not only quickly, but in an extremely understandable way.”
Jeff Balsam founded Adesco in 2013 and leads the company. Jay Jacobs handles all real estate buyer accounts day-to-day - including Madad-adjusted payments, payment timing strategy, and currency conversion. For questions about your specific contract or next payment, Jay is the right person to speak with.
Need help with your next Madad-adjusted payment?
Jay Jacobs handles Adesco's real estate buyer accounts. Adesco clients save up to 4,000 NIS per $100,000 transferred compared to bank rates. On a purchase paid across multiple Madad-adjusted milestones, that saving compounds across every payment.
FAQ
Madad Index Israel - Common Questions