Housing snapshot: Home sales and rentals across Israel

Israel’s housing market is in turmoil. The higher costs of borrowing due to consistent interest rate hikes have taken a toll on potential buyers, who find themselves forced to borrow less or pay more. Meanwhile, private sellers are reluctant to settle for less than the dizzying prices they have come to expect after years of rising values.

Wherever they can, they are choosing to wait for a prospective buyer to meet their expectations.

Developers too are under pressure. As a result, there are some discounts available on new homes, as the need to maintain cash flow encourages construction companies to sell off apartments for less than they would have hoped. But future profits remain uncertain.

These market conditions are leading to prices remaining stable, and even falling slightly, but with less property available overall. There is a strong likelihood that prices will start to rise again as fewer new and secondhand homes come to market, and as — in time — inflation eases and interest rates come down. The current market may have the most favorable conditions for buyers for some time.

This month, The Times of Israel looks at prices for mid-range four-room (three-bedroom) homes across Israel’s major cities. There are undoubtedly fewer “crazy” prices around, but after many months of continuous price increases, a family-sized apartment still costs a substantial amount relative to income, and significantly more than it did a year ago.

We are taking a look at deals closed over the last month as recorded in Israel’s property tax database, which therefore reflect the real prices paid in the market.

1. In early June, on Tel Aviv’s Weinshall Street in the Neve Dan neighborhood in the northeast of the city, a four-room apartment measuring 107 square meters (1,152 square feet) sold for NIS 4,325,000 ($1,154,873). Built in 1999, the apartment is on the 14th of 16 floors, and the sale included two reserved parking spaces.

2. Also in early June, on Zikhron Ya’akov Street at the northern edge of Petah Tikva, a four-room apartment sold for NIS 2,667,500 ($728,228). It was built in 2000 and is located on the fourth of eight floors. It measures 101 square meters (1,087 square feet) and includes two parking spaces.

3. Staying in central Israel, a four-room new-build apartment scheduled for completion this year, located on Tzvi Hirschfeld Street in Rishon Lezion, sold in June for NIS 2,700,000 ($749,167). The apartment measures 108 square meters (1,163 square feet), and is located on the sixth of seven floors.

4. In Haifa, on Alexander Yannai Street in the Karmeliya neighborhood, a 1970 apartment measuring 110 square meters (1,184 square feet) on the first of four floors sold for NIS 2,400,000 ($660,817) in early June.

5. Further north, in Nahariya on Ahad Ha’am Street in the center of the city, a four-room apartment sold in mid-June for NIS 1,625,000 ($447,428). The home covers 105 square meters (1,130 square feet) of space and was built in 2013. The apartment is on the second of seven floors and includes one parking space.

6. In the city of Modiin, a four-room apartment measuring 121 square meters (1,302 square feet) sold for NIS 2,750,000 ($763,041) in late June. The apartment was built in 2007 and is located on Odem Street in the northwest of the city. It is on the second of four floors and comes with a reserved parking space.

7. In mid-June, on Nachal HaBesor Street in Ramat Beit Shemesh A, a four-room apartment built in 1999 sold for NIS 2,600,000 ($716,648). It covers 115 square meters (1,238 square feet) of space and is on the first of four floors, with one parking space included in the sale.

8. In Jerusalem in early June, a four-room apartment on Adam Street, close to the US embassy, sold for NIS 2,586,000 ($712,030). Built in 1985, the apartment is on the third of eight floors and measures 99 square meters (1,066 square feet).

9. Traveling south to Beersheba, on Yaakov Cohen Street, a four-room apartment sold in the first week of June for NIS 1,550,000 ($414,993). Located in a neighborhood close to Ben Gurion University, the apartment was completed in 2018 and measures 110 square meters (1,184 square feet) of space. It is on the sixth of nine floors, and came with a reserved parking space.

10. On Derech HaBsamim, in Rova 4 in Eilat, not far from the shoreline, a four-room apartment of 130 square meters (1,400 square feet) sold in June for NIS 1,940,000 ($534,160). The building was completed in 2015 and the apartment is on the second floor of four, with a reserved parking space.

Rentals

Rental rates are continuing to rise fast. Tenancy renewals are frequently going up by the maximum permitted in the contract, and some renters anecdotally claim that they are being forced out of properties so that the landlord can increase the amount charged by as much as they feel the market can bear — often eight to ten percent more than rental rates that were set during the COVID period.

As the number of people looking to rent grows — since the route to owning a home becomes more difficult — renters have limited options and landlords have the upper hand.

The Times of Israel has looked over a range of properties advertised on the leading online rental forum, Yad2, but it is important to stress that properties offering particularly good value are usually only available through word of mouth.

In Tel Aviv on ּBeilinson Street, close to Dizengoff Center in the middle of town, a two-room (one-bedroom) ground floor apartment is available for rent for NIS 6,000 a month ($1,652, excluding bills). The apartment measures just 40 square meters (431 square feet), and is unfurnished.

Looking for slightly better value in the Gush Dan region, NIS 5,650 per month ($1,556) secures an unfurnished three-room (two-bedroom) apartment in the Givat Rambam neighborhood of Givatayim. There are 80 square meters of space (861 square feet), as well as two balconies, on the second of three floors. Parking is included.

South of Tel Aviv, in the center of Bat Yam on Yoseftal Street, a three-room apartment (unfurnished) on the top floor of four can be found for NIS 4,200 ($1,156). The apartment has 75 square meters (807 square feet) of living space, as well as a balcony, and it is advertised as being a five-minute walk from the train.

In Haifa, NIS 3,100 ($854) rents a two-room apartment of 40 square meters (431 square feet) on Megiddo Street in the central Mercaz HaCarmel neighborhood. The apartment is furnished and refurbished, with a balcony, and is on the ground floor.

For more space, in Kiryat Motzkin on Vered Street, an apartment measuring 60 square meters (646 square feet) with three rooms (two bedrooms) and a balcony is available for NIS 2,710 a month ($746). The apartment is available furnished.

In Jerusalem, on Rabeinu Politi Street, in the popular Arnona neighborhood, a 90-square-meter apartment of three rooms is available for NIS 6,502 a month ($1,790). It is fully furnished, with a balcony, and is located on the second floor of a two-story building.

In the Pisgat Ze’ev neighborhood on the outskirts of the city, on Nachum Ehrenfeld Street, a 2.5 room apartment can be rented for NIS 3,500 a month ($964), including most bills. The apartment is 40 square meters in size (431 square feet) and comes unfurnished.