Israeli Housing Market Sees Price Hikes, Even in Peripheral Areas

The Israeli real estate market, particularly in cities like Be'er Sheva, is experiencing significant price increases, making profitable investments difficult. Factors such as one-time expenses, high purchase taxes, and investor loan payments have rendered many deals financially unviable. Consequently, potential buyers are increasingly opting to calculate costs themselves and seek out exceptional deals, foregoing purchases if none are found.

Historically, investors could acquire apartments in Be'er Sheva for around 300,000 shekels. Today, a two-room apartment can cost 680,000 shekels, with no guarantee of it being a bargain. For instance, a 39-square-meter, ground-floor apartment in Be'er Sheva's Aleph neighborhood recently sold for this price. Larger apartments are also seeing substantial increases; a 77-square-meter, three-room apartment in the new V' neighborhood sold for 1.055 million shekels.

Apartments equipped with a safe room (mamad), a crucial feature in Israel, are commanding even higher prices. A 160-square-meter, five-room apartment with a balcony, parking, and a safe room in Be'er Sheva's Park neighborhood sold for 1.6 million shekels, considered a good deal given current market conditions, even in peripheral areas like Kiryat Gat.

Recent transactions illustrate the broader trend. In Be'er Sheva, a 61-square-meter, three-room apartment on Shitrit Street sold for 770,000 shekels, equating to 12,622 shekels per square meter. Another Be'er Sheva apartment, 67 square meters with four rooms on Kalisher Street, sold for 675,000 shekels, or just over 10,000 shekels per square meter.

Further examples from various locations highlight these price points. In Harish, a 94-square-meter, four-room apartment with a safe room sold for 1.27 million shekels. In Modi'in, prices range from 3.46 million shekels for a 136-square-meter, five-room apartment to 3.916 million shekels for a 116-square-meter unit with a garden. In Pardes Hanna-Karkur, a penthouse sold for 3.435 million shekels, while in Kiryat Gat, a 90-square-meter, four-room apartment fetched 1.85 million shekels. Haifa saw a five-room penthouse sell for 3.2 million shekels.