Ramat Gan Housing Prices Skyrocket, Requiring High Incomes for Purchase

Purchasing a four-room apartment in Ramat Gan, a city once considered affordable relative to Tel Aviv, now demands a median income of NIS 33,000 to NIS 52,000 net per month, depending on the mortgage percentage. A four-room apartment in desirable neighborhoods like Ha'Haruzim can cost nearly NIS 4 million, while the city center averages around NIS 3.9 million. Even a three-room apartment has a median price of approximately NIS 2.7 million.

These prices translate to monthly mortgage payments of NIS 13,100 to NIS 15,500 for a NIS 3.3 to NIS 3.9 million apartment, assuming a 30% down payment, a 25-year mortgage at 3.2% interest for linked loans, or 4.7% for shekel-linked loans. This calculation excludes property taxes, building fees, and insurance.

To manage these payments, banks typically require that mortgage payments do not exceed 40% of net household income. This means a household needs to earn between NIS 33,000 and NIS 39,000 net monthly for a 40% mortgage ratio, NIS 37,000 to NIS 44,000 for a 35% ratio, and NIS 44,000 to NIS 52,000 for a 30% ratio.

An income of NIS 20,000 net per month is insufficient for a standard four-room apartment. With a 40% debt-to-income ratio, the maximum affordable mortgage is NIS 1.4 million, allowing for a property value of around NIS 2 million with a 30% down payment. Smaller, older three-room apartments in buildings without elevators have sold for NIS 1.85 to NIS 2 million.

While average apartment prices in Ramat Gan saw a slight decrease of 0.8% in the first half of 2026, this is contrasted with a national average increase of 3.9%, suggesting some room for negotiation. However, urban renewal projects are expected to sustain prices. Ramat Gan's housing market remains closer in price and income requirements to Tel Aviv, where apartments cost NIS 4.5 to NIS 5 million, than to nearby Petah Tikva, with prices ranging from NIS 2.6 to NIS 3 million.