Housing snapshot: Home sales and rentals across Israel in July 2024

Home prices in Israel rose in April and May, continuing a rally fueled by a shortage of construction workers that has raised expectations of a housing supply shortfall, recently released figures show.

Home prices rose 0.8% in April and May 2024 compared to the previous two months, marking the sixth time that two-month prices have risen in Israel since November 2023, after declining for most of last year, according to the Central Bureau of Statistics. Compared to the same period a year ago, April and May 2023, prices have risen 3.4%, the data showed.

When compared to the previous two months, March and April 2024, prices in April and May rose the most in the Jerusalem district at 2.1%, while increasing 1.2% in the Tel Aviv district and 0.7% in the Haifa area.

According to Finance Ministry data, in May this year 7,908 homes were sold, a 28% rise compared to the same period a year ago.

Investor acquisitions in May rose 38% compared to the same period a year earlier, whereas acquisitions by foreign residents rose by 15%-16% compared to May a year earlier, mostly in the Jerusalem area. However, foreign residents also sold apartments during the month, bringing net acquisitions by foreign residents in Israel in May to just 117 units, far below the estimates in the market since the start of the war, the ministry said.

Sales

To provide the housing snapshot below we use the Israel Tax Authority’s database, which records the actual prices paid for properties. The focus is on sales over the last month, June 24 to July 24, to present the most up-to-date picture of the market. Where available, the exchange rate at the time of the purchase, as it appears in the database, is used.

In Tel Aviv-Jaffa, a 42-square-meter (452-square-foot), two-room (one-bedroom) apartment at 42 Yeshayahu Street in the north of Tel Aviv, close to Yarkon Park, was sold for NIS 3,040,000 ($810, 234) on June 26. The apartment, on the first floor of a four-floor building built in 1987, includes a parking space.

A 70-square-meter (753-square-foot), three-room (two-bedroom) apartment on the seventh floor out of 10 in a building at 7 Asirei Tsiyon Street in the south of the city was sold for NIS 3,035,522 ($826,442) on June 24. The building was built in 2022.

A 72-square-meter (775-square-foot), three-room (two-bedroom) apartment on the second floor of 35 in a building that will be completed this year on Sderot Levi Eshkol in the north of Tel Aviv was sold for NIS 4,900,000 ($1,334,059) on July 2.

Jerusalem’s Old City is surrounded by a national park. (johannes86, iStock at Getty Images)

In Jerusalem, a two-and-a-half-room (one-and-a-half-bedroom), 41-square-meter (441-square-foot) apartment at 47 Abraham Stern Street, near the Biblical Zoo, was sold on July 4 for NIS 2,100,000 ($579,263). The unit is on the first floor of eight in a building completed in 1970.

In Haifa, a four-room (three-bedroom), 95-square-meter (1,023-square-foot) apartment at 20 Harel Street was sold for NIS 1,500,000 ($411,974) on July 1. The apartment is on the second floor of two in a building built in 1960. The unit has one parking space attached.

In Beersheba, a three-room (two-bedroom), 65-square-meter (670-square-foot) apartment at 3 Radak Street was sold on June 24 for NIS 685,000 ($181,938). The apartment is on the third floor of a four-floor building built in 1970.

In Netanya, a five-room (four-bedroom), 111-square-meter (1,195-square-foot) apartment at 1 Yosef Street was sold on June 25 for NIS 2,800,000 ($743,691). The unit, on the third floor of an eight-floor building built in 2005, has an attached parking space.

Illustrative: A view of apartment buildings in the Givat Olga neighborhood in Hadera, on June 22, 2022. (Nati Shohat/Flash90)

Rentals

The database of real estate website Madlan was used to compile this sample of rental apartments on the market with a focus on three-room (two-bedroom) properties, suitable for a couple, two roommates, or a small family.

In Tel Aviv, a 53-square-meter (570-square-foot), two-room apartment (one-bedroom) on the first floor of eight at 1 Sderot Yerushalayim was put on the market for NIS 8,500 ($2,342) monthly. The air-conditioned unit, which has not been lived in yet, is in a new building close to the Neve Tzedek neighborhood, a few steps from the beach and the light railway. It also has a quiet balcony, a large designer kitchen and soundproof windows, the website says.

In Jerusalem, a 43-square-meter (463-square-foot), two-room (one-bedroom) fully furnished apartment on the busy Jaffa Street was put on the market for NIS 5,100 ($1,405) per month. The air-conditioned unit, with a balcony, is on the second floor of five in a newly constructed building. The entrance, which is just a few minutes away from a light rail station, is from a quiet side street, the website says.

In Haifa, an 80-square-meter (861-square-foot), two-and-a-half-room (one-and-a-half-bedroom) apartment on 45 Bethlehem Street was put on the market for NIS 4,200 ($1,157) a month. The newly renovated airconditioned unit, on the second floor of six, has a balcony with a view, is partially furnished, has parquet floors, and comes with some electrical appliances and a storage facility, the website says.