4-Room Apartment in Rehovot Sells for $650,000, Requiring High Income

A four-room apartment in Rehovot was sold in the second quarter of the year for an average price of approximately 2.44 million shekels, based on data from the Central Bureau of Statistics covering 81 transactions. The median price for a similar apartment in the city aligns with this figure. Prospective buyers should budget around 2.45 million shekels for a four-room unit. To afford the mortgage on such a property with a 30% down payment, a household needs a net monthly income of about 24,000 shekels.

This calculation assumes a 25-year mortgage with a "Shpitzer" repayment plan and an average interest rate of 4.7%. The actual interest rate can vary based on the chosen loan structure and the borrower's profile with the bank. With a 30% down payment (approximately 735,000 shekels) on a 2.45 million shekel apartment, the mortgage would be around 1.72 million shekels, resulting in a monthly repayment of about 9,700 shekels. Each additional 100,000 shekels in down payment reduces the monthly repayment by approximately 570 shekels and the required income by about 1,400 shekels.

For instance, with the minimum required down payment of 25% (around 610,000 shekels), the mortgage increases to approximately 1.84 million shekels, with monthly payments of about 10,400 shekels, necessitating a net income of around 26,000 shekels. A larger down payment of 1 million shekels reduces the mortgage to 1.45 million, lowering the monthly payment to about 8,200 shekels and requiring an income of roughly 20,600 shekels. Those with 1.5 million shekels in equity would need a mortgage of only 950,000 shekels, with payments around 5,400 shekels and a required income of about 13,500 shekels net.

Bank of Israel regulations limit mortgage financing to 75% for first-time homebuyers, 70% for those upgrading, and 50% for investors. For a 2.45 million shekel apartment, this translates to a minimum down payment of about 612,000 shekels for a primary residence, 735,000 for upgraders, and 1.225 million for investors. Banks also cap mortgage repayments at 50% of income, though many prefer to keep it below 40% to allocate more capital against the loan. A repayment level of 30-35% is considered more comfortable. At a 30% repayment ratio, a four-room apartment with a 30% down payment would require a net monthly income of approximately 32,500 shekels.

Average prices for four-room apartments in Rehovot have slightly decreased, from about 2.49 million shekels in early 2025 to 2.44 million in the second quarter. The median price has fallen by about 2.75% over the past year, with some neighborhoods like Rehovot HaHolonit seeing a steeper decline of around 9%. Prices vary significantly by neighborhood, with five-room apartments in Rehovot HaMada selling for 3.1 to 3.5 million shekels, while four-room apartments in Rehovot HaHolonit range from 2.2 to 2.4 million shekels.