Buying a Home in Ramat Gan Requires Over NIS 40,000 Monthly Net Income

Purchasing a four-room apartment in Ramat Gan, a city often considered an extension of Tel Aviv, now demands a significant monthly net income, with prices for a good quality unit ranging from NIS 3.3 to 3.9 million. In the city center and desirable neighborhoods like Haruzim, prices can approach NIS 4 million. A three-room apartment averages around NIS 2.7 million.

To afford such a property, assuming a 30% down payment and a mortgage covering the rest over 25 years at current interest rates, the monthly mortgage repayment alone would be between NIS 13,100 and NIS 15,500. Factoring in that mortgage payments typically should not exceed 40% of net income, a household would need to earn between NIS 33,000 and NIS 39,000 net per month. If this ratio is closer to 35%, the required income rises to NIS 37,000-44,000, and for those aiming for a 30% debt-to-income ratio, it's NIS 44,000-52,000.

An income of NIS 20,000 net per month is insufficient for a good four-room apartment in Ramat Gan. This income level, with a maximum NIS 8,000 mortgage payment (40% of income), can finance a loan of approximately NIS 1.4 million, allowing for a property around NIS 2 million with a 30% down payment. Such properties are typically older, three-room apartments of 70-75 square meters in buildings without elevators, costing between NIS 1.85 and 2 million.

The required down payment for a NIS 3.3 million apartment is nearly NIS 1 million, and for a NIS 3.9 million apartment, it's about NIS 1.17 million. First-time buyers can secure up to 75% financing, reducing the immediate down payment to NIS 825,000-975,000, but this increases the monthly mortgage payment. Additional costs like legal fees, agent commissions, and potentially purchase tax must also be considered.

While the average price of an apartment in Ramat Gan saw a slight decrease of 0.8% in the first half of 2026 compared to a national average increase of 3.9%, prices remain high, driven by urban renewal projects. These projects are set to significantly increase housing density in areas like Aba Hillel, Rechesi, and Arania, and on Jabotinsky Street. Compared to neighboring cities, Ramat Gan's prices are closer to Tel Aviv's NIS 4.5-5 million range than to Petah Tikva's NIS 2.6-3 million.