Prices of Apartments Fall in Most of Israel

Apartment prices in Israel are trending downwards

A recent study by Globes and Homeless was published in Globes on April 8, 2012 showing that prices of all types of apartments in six out of fifteen areas researched have dropped, while in two of the areas, they have increased.

Tel Aviv, Rishon Lezion, Netanya, Bat Yam and Holon all showed a slight drop in prices, while Jerusalem and the Sharon area both showed more significant drops.  In Modi’in there was a reported 0.5% increase in the price of large apartments and an increase of 1.1 for small apartments.  In Petach Tikvah the cost of small apartments rose 3.2% and larger apartments were between 0.7-0.8% more expensive.

The study also showed that the rental market has taken a dive as well in 11 out of 16 areas researched.  In Tel Aviv the average rent for a 5-room apartment dropped by 3.5%, although the rent of small apartments rose by 0.3% to an average of NIS 5,746 NIS per month.

The article emphasizes that the highest profit from the rental of large apartments was reported in Petach Tikvah but even there the profit is just under 4%.  The article did not explain why the prices of apartments Modi’in and Petach Tikvah are still on the rise despite the drop in prices in other areas of the country.