As we reach the end of 2022 and look back on the last 12 months in the housing market, it is fair to say they were quite extraordinary.
Prices for homes across Israel have risen by an average of over 20 percent based on the latest available figures. Meanwhile, the number of homes changing hands has fallen. As the costs of borrowing have risen with the month-on-month increases in interest rates, the overall value of home loans has also been dropping.
The average price of an apartment is now around NIS 1.9 million ($556,000) across the country, and close to NIS 3 million ($878,000) in Tel Aviv. With average wages up by around 4% and layoffs in the high-tech sector, housing costs make climbing on, or up, the ladder increasingly challenging.
In this end-of-year round-up of the transactions taking place, The Times of Israel explores what an average apartment with two to four bedrooms now goes for. We’re using the record of house prices in the property tax system, to make sure we capture the real prices purchasers are paying.
1. In Rehovot on Tzvi Horowits Street on the outskirts of the city, a three-bedroom (four-room) apartment changed hands in early November for NIS 1,825,000 ($517,000). The apartment measured 84 square meters (904 square feet) and dates to 1970. The apartment was on the top floor of four.
2. On Rothschild Street in the center of Petah Tikva, a two-bedroom (three-room) apartment sold for NIS 2,050,000 ($600,000). The apartment is located on the third floor of three, measuring 77 square meters (829 square feet).
3. Also on Rothschild Street, but this time in central Bat Yam, a two-bedroom (three-room) apartment sold in late November for NIS 1,880,000 ($555,000). Built in 1960, it measures 91 square meters (980 square feet) and is on the second floor of four.
4. In Haifa in early December, an apartment on Lea Street, sold for NIS 2,070,000 ($602,000). It measures 120 square meters (1,292 square feet) with four bedrooms (five rooms) on the first of six floors. The building dates to 1970, and also offered a dedicated parking space.
5. In the Pisgat Ze’ev neighborhood in Jerusalem, on HaShisha Asar Street, a two-bedroom apartment measuring 66 square meters (710 square feet) sold for NIS 1,920,000 ($562,000). The building was completed in 1980 and the apartment is on the third of five floors, with one dedicated parking space.
6. On the outskirts of Ramat Beit Shemesh on Yirmiyahu Hanavi Street, a two-bedroom apartment sold for NIS 1,930,000 ($565,000). The apartment was built in 2013 and covers 90 square meters (969 square feet) on the third floor of six, with one parking space.
7. In Modiin on Tamuz Street, a 70 square meter (753 square feet) apartment with two bedrooms was sold in late November for NIS 2,150,000 ($629,000). The apartment was built in 2013 and is on the second floor of three, with one parking space.
8. Close to the Ben Gurion University of the Negev in Beersheba, a home on Ya’akov Cohen street sold for NIS 1,900,000 ($556,057) in early December. The unit had three bedrooms (four rooms), covering 160 square meters (1,722 square feet) in total. The apartment building dates from 2014, with 19 floors in total. This apartment was on the fifth floor.
9. In north Netanya close to the beach on Hamelachim street, a two-bedroom apartment changed hands in early December for NIS 1,930,452 ($563,142). It was newly built this year, measures 84 square meters (904 square feet), and is on the 18th floor out of 25, with 97 apartments in the building.
10. On Balfour street in Ashkelon, a four-bedroom (five-room) apartment sold for NIS 1,920,000 ($562,000) in early December. The apartment measures 126 square meters (1,356 square feet) and dates to 2011. The apartment was on the fifth of nine floors with one parking space.
11. In Tel Aviv, where the average price for an apartment is significantly higher than in the rest of the country, NIS 2,950,000 ($864,000) bought a one-bedroom (two-room) apartment in the city’s Old North neighborhood, on HaShela street. The apartment measures 48 square meters (517 square feet) on the third of four floors in a building dating to 1950.
With overall inflation at a little over 5%, costs of renting for new tenants are up by around 8% and the relative shortage of long-term rental apartments is putting pressure on prices across the country.
Costs naturally depend on size, location, and condition, but the average rent for a shared apartment is now between NIS 4,500 ($1,300) and NIS 6,500 ($1,800) per month.
Yad2 continues to be one of the major platforms for advertising rentals across the country, with prices and availability of potential rentals adjusted daily. Here’s a selection of what is available in some key rental locations.
In the heart of things in Tel Aviv, an apartment on Rothschild Boulevard is available to rent for NIS 20,000 ($5,900) a month. In addition to the prestigious address, the apartment has three bedrooms (four rooms) and measures 140 square meters (1,507 square feet). It is on the second floor of three, and includes two balconies and a parking space.
At the other end of the Tel Aviv housing spectrum, NIS 5,000 ($1,500) a month could secure a two-bedroom (three-room) apartment measuring 65 square meters (700 square feet) in Yafo, roughly a ten-minute walk from the beach.
In Jerusalem, in the largely ultra-Orthodox area of Kiryat HaYovel, a 70 square meter (753 square feet) apartment divided into two and a half bedrooms (three and a half rooms) is going for NIS 3,500 ($1,000) monthly. Alternatively, a two-bedroom (three-room) apartment of 65 square meters (700 square feet) close to the central market area of Mahane Yehuda is on offer for NIS 6,000 ($1,800).
In Haifa, there is a much narrower range of prices across the city. NIS 4,525 ($1,300, including property tax) can secure a three-bedroom (four-room) apartment in the West Carmel neighborhood, on the first floor, measuring 95 square meters (1023 square feet) with a parking space included. Two bedrooms, in an apartment of 50 square meters (538 square feet) in the Kiryat Shprintzak neighborhood will cost NIS 2,365 ($700) per month.
In Tiberias, NIS 1,850 ($500) can secure a duplex apartment in the Kiryat Moshe neighborhood of two and a half bedrooms (three and a half rooms) measuring 89 square meters (958 square feet) with a balcony. Alternatively, for NIS 4,500 ($1,300), a four-room (three-bedroom) penthouse apartment is available in Kiryat Shmuel, close to the Sea of Galilee, with 120 square meters (1,292 square feet) of space.
In Beersheba, NIS 3,800 ($1,100) can secure a three-bedroom (four-room) apartment measuring 121 square meters (1,302 square feet) in the Ramot B district. Alternatively in the city’s Daled neighborhood, a two-bedroom (three-room) apartment measuring 85 square meters (915 square feet) can be rented for NIS 1,900 ($600) per month.
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