Ramat Gan Housing Prices Skyrocket, Requiring High Incomes

Buying an apartment in Ramat Gan, a city once considered affordable relative to Tel Aviv, now demands significant financial resources. A four-room apartment in the city has a median price of approximately 3.3 million shekels, with prices in desirable neighborhoods like HaHaruzim reaching nearly 4 million shekels and the city center around 3.9 million shekels. Three-room apartments average about 2.7 million shekels.

To afford a typical apartment costing between 3.3 and 3.9 million shekels, assuming a 30% down payment and a 25-year mortgage with current interest rates, monthly mortgage payments alone range from 11,200 to 13,200 shekels. This figure excludes additional costs such as property taxes, building fees, and insurance.

Considering that mortgage payments should not exceed 40% of net household income, residents would need a net monthly income of 28,000 to 33,000 shekels. If this ratio is lowered to 35%, the required income rises to 32,000-38,000 shekels, and for a 30% ratio, it climbs to 37,000-44,000 shekels. This income level is achievable for dual-income households in high-paying sectors like high-tech, but poses a challenge for couples with average salaries.

Even a net income of 20,000 shekels per month is insufficient for a good four-room apartment in Ramat Gan. This income level, at a 40% mortgage-to-income ratio, allows for a maximum mortgage of about 1.65 million shekels, which, with a 30% down payment, only covers apartments around 2.35 million shekels. While such apartments were sold in the summer, they were typically smaller, older three-room units in buildings without elevators.

Recent data from the Central Bureau of Statistics indicates a slight decrease of 0.8% in the average apartment price in Ramat Gan during the first half of 2026, settling around 3.07 million shekels, contrasting with a national average increase of 3.9%. This trend suggests potential for negotiation, particularly for second-hand properties. However, ongoing urban renewal projects, which involve demolishing older buildings to construct significantly more modern units, are expected to sustain property values. For instance, projects in the Aba Hillel, Rechesi, and Arania intersection area, and the Matmid complex on Jabotinsky Street, will substantially increase housing density.