Netanya Apartment Sells for 15% Below Neighborhood Average

A 5-room apartment in Netanya's Kiryat Hasharon neighborhood was sold for NIS 2.48 million, approximately 15% less than the area's average price. The 125-square-meter apartment, located on the third floor of a 17-story building, includes a balcony, storage, and private parking. The Kiryat Hasharon neighborhood, established in the early 2000s, has seen price drops of about 5% in its southwestern section, near the project where this transaction occurred. Average prices for 4-room apartments in the area are currently NIS 2.5 million, while 5-room apartments average NIS 3 million, equating to about NIS 23,500 per square meter.

The apartment is part of a "Mechir L'Sheken" (price for resident) project, initiated in late 2017 by Rami Shabiro. Initially, 5-room apartments in this project were sold for an average of NIS 1.58 million. More recently, in 2024-2025, resale prices for 5-room apartments in higher floors ranged from NIS 2.8 to 3 million, with lower floors selling for around NIS 2.73 million by late 2024. A garden apartment in the project sold for NIS 3.9 million earlier this year.

Analysis suggests that standard apartments in this project are priced 5-10% lower than comparable units in the vicinity, despite being the newest development. This price gap appears to be widening due to factors such as apartments not being upgraded beyond the basic "Mechir L'Sheken" standard, and the project's location near a stadium and a main road. The NIS 2.48 million sale price, equating to about NIS 20,000 per square meter, is notably low compared to the neighborhood average, even considering the apartment's lower floor.

Real estate agent Barak Neumann stated that while he previously sold a similar apartment in the project for NIS 3 million, it was upgraded and on a higher floor. He noted a significant drop in demand and prices within this specific project, exceeding the general neighborhood decline. Neumann attributed this to many "Mechir L'Sheken" buyers renting out their apartments, resulting in units that don't meet buyer expectations and a location that is less desirable. However, he added that the lower prices could attract investors due to high rental yields compared to the rest of the neighborhood.