Housing snapshot: Home sales and rentals across Israel

Despite higher interest rates to rein in inflation, Israeli housing prices have continued rising. The latest numbers show increases of 19% year on year, with every part of the country seeing double-digit jumps. Market data shows fewer properties changing hands amid the price increases.

In a market like this, property values are shifting by meaningful amounts month by month. That’s why this feature looks at homes sold over the previous four to six weeks, using Israel’s property tax database to find out the final prices paid for properties. The struggle to get on the housing ladder doesn’t just apply to young couples and singles. Families looking for a home with at least three bedrooms (or four rooms in Israel) are closely watching the market and trying to figure out what they can afford.

1. In central Jerusalem on Menashe Street close to the Old City, a four-bedroom (five-room) property sold in early September for NIS 4,250,000 ($1,237, 623). The unit covers 75 square meters (807 square feet) in a building constructed in 1970, on the third floor of six.

2. In Holon on Saadia Gaon street, in the northern part of the city near the Wolfson Medical Center, a three-bedroom apartment (four-room) sold for NIS 2,230,000 ($649,388) in early September. The 73-square-meter (786 square feet) apartment is on the second floor of six in a building dating to 1994. The apartment sale included one reserved parking space.

3. In central Petah Tikva on Hafetz Hayim street, a four-bedroom apartment sold in early October for NIS 2,415,000 ($682,589). The total area of the apartment, on the fifth floor of six, was 106 square meters (1141 square feet). The building was completed last year (2021) and houses 50 apartments.

4. In Arad, towards the edge of town, a three-bedroom single-story house changed hands for NIS 1,300,000 ($385,185) in September. The house on Mivtsa Lut covers 122 square meters (1,313 square feet) on a plot of 701 square meters (7,546 square feet) and was built in 1960. There is also dedicated parking.

5. In Beit She’an, on Kiryat Rabin street on the outskirts of town, a four-bedroom apartment on the first floor of a four-story building sold in the second half of September for NIS1,100,000 ($312,551). The unit measures 147 square meters (1,582 square feet) and comes with a reserved parking space. The building dates to 2016.

6. In Safed on Eliyahu Fromenchenko street, a four-bedroom villa sold for NIS 2,600,000 ($772,889) in early September. Built in 1989, the property measures 242 square meters (2605 square feet).

7. On HaGalil street in Nazareth, a three-bedroom first-floor apartment in a building completed his year was sold for NIS 1,570,000 ($466,706) in early September. The apartment measures 119 square meters (1281 square feet) with 39 apartments in the block in total. There is no reserved parking.

8. In Bnei Brak, currently Israel’s most crowded city, a four-bedroom apartment changed hands in mid-September for NIS 3,900,000 ($1,102,941). The unit is on the seventh floor of a nine-story building completed in 2021. It measures 135 square meters (1,453 square feet). The precise location is not available.

9. In Caesarea, an upscale city primarily with private homes a three-bedroom apartment in a suite hotel was sold for NIS 2,900,000 ($848,946). It measures just 81 square meters (872 square feet) and can be found on the first floor of a two-story development, containing 31 apartments. The building dates from 2000. This model generally allows for the apartment to be rented out by the hotel when the owners don’t want to use it.

Rentals

Rental prices seem to be rising more slowly than property sales, although some areas (looking at you, Tel Aviv) saw increases of 30-50%.

The number of families for whom renting is the only option (because they simply don’t have the capital for a down payment) are rising. But with good income, they are able to afford rental payments which would have seemed absurdly high just a few years ago. Here are some options for families looking for a rental around the country, taken from the online property marketplace Yad2.

In the old Jaffa area of Tel Aviv, a three-bedroom apartment measuring 100 square meters (1,076 square feet) is available for NIS 11,000 ($3,126) a month.

Not far away, in south Tel Aviv, a high-end duplex is available to rent with three bedrooms measuring 270 square meters (2,906 square feet) on Yehuda Margoza street. The cost is NIS 25,000 per month ($7,103), but there is also access to a concierge service, a gym, and a pool.

In Ramat Gan, there’s a garden apartment with three and a half bedrooms available to rent at NIS 8,888 per month ($2,500) starting in November. The unit measures 256 square meters (2,756 square feet). The apartment is on Ben Saruk street in the central area of the city.

In the Neve Sharet district of Zichron Ya’akov, a five-bedroom villa is available to rent for NIS 9,500 a month ($2,699). The plot measures 318 square meters (3,423 square feet) — the living area is 160 square meters (1,722 square feet).

ָA three-bedroom apartment in Tiberias with a view of the Sea of Galilee on Moran street is available for NIS 6,500 a month ($1,847). It measures 120 square meters (1,292 square feet) and is on the first floor in a newly completed building. It comes with parking.

In Jerusalem, an apartment with three bedrooms is on offer currently for NIS 7,800 per month ($2,216) in the Mekor Haim neighborhood in the southwestern part of town. It is on the second floor of four in the building and measures 110 square meters (1,184 square feet). One of the balconies was enclosed and can be used as an additional room.