Jerusalem Light Rail Line Boosts Property Values Even Before Full Construction

A new study reveals that property values along the planned routes of Jerusalem's Green Line light rail have seen a significant increase, even in areas where construction has not yet begun. The Green Line's first segment opened in August, connecting Malha to the Central Bus Station via 13 stations. This expansion, 15 years after the Red Line, prompts questions about the impact of mass transit on housing prices.

The research, conducted by Magma Real Estate Marketing and economist Oren Iluz, analyzed over 48 property transactions in six Jerusalem neighborhoods between 2025 and 2026, comparing apartments located near the planned light rail route with those further away. The study accounted for factors like apartment size, balconies, parking, and storage to isolate the impact of proximity to the transit line.

Results indicate that new 3-room apartments along the route are, on average, 3.5% more expensive than similar apartments within the neighborhood, a difference of approximately 95,000 shekels. For new 4-room apartments, this premium rises to 4.6%, averaging around 161,000 shekels more. The premium is particularly pronounced in neighborhoods like Katamon and Talpiot, where 4-room apartments near the route can cost over 200,000 shekels more.

Interestingly, the price difference is even more substantial for older, second-hand apartments. On average, these apartments are 9.4% more expensive along the light rail route, a gap of about 202,000 shekels. This phenomenon is attributed to increased building rights associated with transit corridors, meaning older apartments are valued not just for their current state but also for their potential for future development. This effect is observed even in areas awaiting future lines, suggesting buyers are investing in future urban planning and connectivity.

Real estate professionals note that proximity to transit stations is increasingly becoming a primary consideration for homebuyers in Jerusalem, shifting priorities from views and air direction to accessibility. This trend is particularly strong among families and individuals relocating from international metropolises who prioritize efficient public transportation over private vehicles. The Jerusalem Municipality acknowledged the findings, stating that while improved accessibility via rail can influence property values, other factors like building rights and urban renewal also play a significant role.