Housing Lottery Winners Set to Profit as Property Values Double

Thousands of Israelis who won apartments through the government's "Price for the Resident" housing lottery between 2018 and 2019 are now poised to sell their properties, potentially doubling their investment. This program, which allowed general registration and offered deeply discounted prices, proved particularly lucrative for those who purchased homes in peripheral areas.

In the southern city of Ofakim, winners who entered the lottery in late 2019 and secured apartments in early 2020 will soon be eligible to sell. Some of these apartments are already being marketed, even though contracts cannot be finalized until next year. While many winners are expected to live in their new homes, a significant portion are looking to sell for profit.

Initially, three-room apartments in Ofakim were sold for approximately 5,800 shekels per square meter, with four-room apartments costing between 700,000 and 750,000 shekels. Today, a three-room apartment in new projects in Ofakim sells for around 1.39 million shekels, and a four-room apartment for about 1.6 million shekels. This represents a doubling of the initial value for many lottery winners.

Despite a high supply of apartments in Ofakim's new neighborhoods, which can moderate price increases, most property owners are still expected to double their investment. The article notes that housing prices in Israel generally doubled between 2012 and 2022. Recent sales in Ofakim indicate prices ranging from 14,000 to 16,000 shekels per square meter, with four-room apartments selling for around 1.6 million shekels and larger six-room garden apartments reaching 2.23 million shekels.