Apartment Prices Near Ben Airport Show Stark 60% Disparity
Translated & summarized from Ice by baba
The story in 5 lines · by baba
- Modi'in is the most expensive, while Lod and Ramla are the cheapest.
- Price differences are linked to socio-economic status and urban development.
- Limited supply and high demand keep Shoham's prices high.
- Future development in Lod and Ramla may reduce price disparities.
- Buyers should consider future urban development when purchasing property.
While the central region's housing market is experiencing a slight price decrease due to a slowdown in transactions, particularly in Tel Aviv, the areas near the airport exhibit considerable variation.
New four-room apartments in Modi'in are priced between 3.65 and 3.75 million shekels, while similar units in Yehud cost around 3.5 million shekels, and in Shoham, about 3.4 million shekels. In contrast, Lod and Ramla offer the most affordable options, with prices ranging from 2.25 to 2.35 million shekels. This disparity is attributed to factors such as the socio-economic status of residents and the level of urban development, with Lod and Ramla historically suffering from neglect despite recent development efforts.
Experts suggest that the price gap reflects the current maturity of the urban environment. Shoham, for instance, maintains high prices due to limited land availability, high demand, and its proximity to employment hubs like Airport City and the industrial zones of the Modi'in region. This creates a unique market where scarce properties command premium prices.
However, there is optimism regarding the future of prices in Lod and Ramla. Alex Mariash, CEO of Hachsharat Yishuv Urban Renewal, believes the price gap will narrow as planned development projects, including thousands of housing units, the "Terminal 6" employment park, and the relocation of a military recruitment center, progress. He argues that these developments will necessitate improvements in transportation, infrastructure, commerce, and services, ultimately boosting the city's long-term value and potentially closing the price gap with neighboring cities.
Realtors acknowledge that while Lod and Ramla offer the lowest entry point, the current price difference is not necessarily indicative of the future. Rami Dvash, VP of Marketing and Sales at Reik Real Estate, emphasizes that reducing the price gap requires more than just building apartments; it necessitates continued progress in infrastructure, transportation, commerce, services, and employment. As these elements strengthen, the perception of these cities may gradually change, influencing property values.
Read the original at Ice