Jerusalem Apartment Prices Show Varied Returns Over Five Years

Purchasing an apartment in Jerusalem in 2021 proved to be a lucrative real estate investment, with prices appreciating significantly over the subsequent years. In contrast, those who bought in 2023 experienced much smaller gains, and in some cases, a real capital loss.

For example, a 3-room, 63-square-meter apartment on Adam Street, bought in January 2021 for 1.4 million shekels, was sold in July of the same year for 2.1 million shekels, a 50% increase. This translates to an average annual appreciation of about 10%, or 7.6% when accounting for compound interest.

Another transaction on Avshalom Habib Street involved a 60-square-meter apartment purchased in September 2022 for 1.545 million shekels. While prices saw a slight increase that year, they stabilized and even dipped slightly in 2023. By June 2024, the apartment sold for 1.71 million shekels, a 10% overall gain, though the profit was lower after accounting for one-time expenses.

Longer-term investments also show substantial returns. An apartment on Moshe Kol Street, purchased in 1999 for 1.31 million shekels, recently sold for 4.25 million shekels. Across various examined properties bought before the end of 2022, annual returns ranged from 8% to 10% (non-compounded). Properties acquired after this period showed only minor, single-digit percentage increases.

Apartments purchased in February 2023, such as an 81-square-meter, 4-room unit on Antigonus Street, bought for 2.82 million shekels and later sold for 3.195 million shekels, reflected an annual appreciation of only about 4%. This data indicates a slowdown in the real estate market since 2023, contrary to some economists' predictions of double-digit price drops. Notably, none of the 20 apartments analyzed in the report experienced a capital loss.