Israeli Cities Where Apartments Can Be Bought for Under $400,000 Revealed
Translated & summarized from Ice by baba
The average apartment price in Israel is around 2.4 million shekels, requiring a substantial down payment and income. A study found that only Beit She'an offers average four-room apartments for under 1 million shekels. Southern cities like Yeruham, Arad, Be'er Sheva, and Dimona have prices under 1.1 million shekels, with tax benefits influencing purchasing decisions in some areas. Other cities like Haifa and Netivot also feature higher average prices due to new construction and demand.
The story in 6 lines · by baba
- Average apartment prices in Israel have reached approximately 2.4 million shekels, requiring significant down payments and income.
- Only Beit She'an offers average four-room apartments for under 1 million shekels, at 960,000 shekels.
- Yeruham, Arad, Be'er Sheva, and Dimona are southern cities where four-room apartments average under 1.1 million shekels.
- New construction in cities like Dimona and Haifa drives up average apartment prices.
- Tax benefits of 16-18% in some southern cities influence buyer preferences and increase average prices.
- Apartments without bomb shelters in specific neighborhoods of Yeruham and Arad can be found for 400,000-500,000 shekels.
The average price of an apartment in Israel has reached approximately 2.4 million shekels, making it difficult for many to enter the housing market. To purchase such a property, a down payment of around 800,000 shekels is typically required. Furthermore, a bank would likely assess a borrower's ability to repay a 1.6 million shekel mortgage, which necessitates a net monthly income of approximately 22,857 shekels, assuming a 35% debt-to-income ratio.
A review of real estate transactions over the past year, using data from Yad 2, sought to identify cities where a four-room apartment could be purchased for under 1.5 million shekels. The findings revealed that only in Beit She'an could an average apartment be found for less than 1 million shekels, priced at 960,000 shekels.
Four southern cities, Yeruham, Arad, Be'er Sheva, and Dimona, offer four-room apartments for under 1.1 million shekels. The article notes that Dimona's average price is higher than Be'er Sheva's due to extensive new construction, which drives up prices for new apartments, while Be'er Sheva still sees investors purchasing older, cheaper units. Other cities where average prices remain below 1.42 million shekels include Kiryat Shmona and Ma'alot.
Haifa's average prices are also elevated due to new construction, though apartments under 1 million shekels can be found in some areas. Cities like Afula, Tiberias, Sderot, Naveh Shalom, and Migdal HaEmek have average prices up to 1.51 million shekels. Netivot, surprisingly, is above this threshold, possibly due to high demand starting in 2022.
In specific neighborhoods of Yeruham and Arad, apartments without bomb shelters can be purchased for 400,000-500,000 shekels, with some three-room apartments or smaller selling for under 400,000 shekels. Ofrakim also slightly exceeds the 1.5 million shekel threshold. The article explains that significant tax benefits of 16-18% in some southern cities encourage buyers of new apartments, increasing their average price compared to Be'er Sheva, where such benefits are absent. These tax breaks can save an average couple thousands of shekels monthly, making the lower monthly mortgage payments in these areas more attractive.
