Israeli Apartment Rental Prices Stabilize, Show Monthly Dip

Apartment rental prices in Israel saw a slight decrease of approximately 0.8% in August compared to July, reaching an average of 5,063 shekels, down from 5,104 shekels the previous month. Despite this monthly dip, rental costs remain 3.7% higher than in August of the previous year, according to data released on September 27 by the real estate analytics company WeCheck. The overall number of rental listings remained largely unchanged. However, a significant shift occurred in the composition of available apartments: the supply of larger units, specifically 4-5-room apartments, increased by 15.2% in August, while the availability of smaller 1-3-room apartments decreased by 6.3%. Over the past 12 months, the total rental supply has grown by 6.2%, including an increase in smaller units. This structural change also led to divergent price trends. Rents for 1-3-room apartments rose by an average of 0.2% in August to 4,328 shekels, whereas rents for 4-5-room apartments fell by 2.1% to 6,451 shekels.

Geographically, Jerusalem experienced the most significant year-over-year rent increase, with prices climbing 7.4% compared to August of last year. Tel Aviv saw a 3.6% rise, and Ashdod recorded a 0.7% increase over the same period. Rami Ronen, CEO of WeCheck, described the August market as unique, noting a high overall supply coupled with substantial internal shifts. He cautioned that it is too early to declare a trend reversal, as annual rental prices are still elevated.