Real estate prices in Israel have risen by an average of 36 percent over the past 10 years, and by over 50 percent in some cities. This was recently reported by the Israeli daily Yediot Ahronot, which tasked a leading real estate appraiser with assessing the situation.
After real estate prices fluctuated a little in Israel in 2020, it can now be said that the pandemic has not rocked the real estate market in Israel. On the contrary, in Israel’s southern coastal city of Ashkelon, for example, which is less than six miles from the Gaza Strip and was heavily bombarded by rockets in the last Gaza war, house prices have risen by 52 percent over the past 10 years. In 2011, a four-room apartment there cost around $257,000; today, you’d pay $390,000 for the same apartment. Despite its proximity to the Gaza Strip, Ashkelon is an attractive destination for Israeli investors and families. In second place comes the coastal town of Herzliya, where housing prices have risen by 50 percent, and in third place is Rehovot with 48 percent.
“The figures clearly show that young families and investors are looking for apartments on the periphery over the last decade. The increase in value for real estate is therefore taking place outside of the areas of more popular demand,” explained the Israeli appraiser Ehud Danos. “Buyers and investors are looking for the next cheap place and caused price increases on the fringes of the usual residential centers. What is happening in the city of Herzliya is extraordinary, but in the end Herzliya is also a kind of outskirts of Tel Aviv, although this city is relatively expensive. The same trend, only with people with more money.”
In fifth place is Israel’s metropolis Tel Aviv, where prices have risen by 36 percent over the past 10 years. In Haifa, Petah Tikva, Eilat and Jerusalem prices have risen as well, but relatively less than the previously mentioned locations. In Israel’s eternal, united capital, Jerusalem, prices have risen by around 20 percent. In 2011 a four-room apartment cost around $519,000, and today would be priced at $610,000.
Despite all the dangers in and around Israel, housing prices are rising in the country. The controversial land in the Holy Land is scarce, and Israel’s population growth rate is 1.78 percent (source: World Bank). The annual influx of new immigrants must also be added to this, numbering between 30,000 and 50,000 per year.