Real Estate Heat Index Reveals Israeli Cities Where Buying is Difficult

A new "heat index" from real estate platform Yad2 reveals significant disparities in Israel's property market, with demand far outstripping supply in some areas while others show a buyer's market. The index measures the ratio of available properties to actual buyer interest in each locality. A score of 70 or above indicates a "strong seller's market," where high demand makes purchasing difficult, suggesting it may not be the optimal time to buy.

Modi'in Maccabim Re'ut leads the list with over 84 points, indicating immense demand and fierce competition among buyers. Other high-ranking cities include Kiryat Motzkin (around 80.7 points), Sderot (around 79.2 points), Tirat Carmel (around 77 points), and Kiryat Bialik (around 76.1 points). These results highlight strong interest not only in central Israel but also in peripheral areas and the Krayot region, attracting families and investors.

A score between 55 and 69 signifies a "seller's market" with high demand relative to supply. A neutral market, with a score between 44 and 55, includes cities like Ashdod, Haifa, and Harish. Below this range, the market favors buyers.

At the bottom of the index are cities like Ramat Hasharon (around 23.6 points), Tel Aviv-Yafo (around 24.5 points), Tel Mond (around 25.7 points), Hod Hasharon (around 27.3 points), and Kadima Tzoran (around 28 points). This indicates a large supply of properties or lower buyer interest in these locations.

The Israeli real estate market has been unstable since the start of the war, influenced by high interest rates, labor shortages, and the rising cost of living. Restrictions on contractor deals by the Supervisor of Banks have also contributed. The index demonstrates that the market varies greatly by region, with some areas seeing buyers compete for every available apartment, while others operate at a different pace.

Tel Aviv, despite its low ranking on the heat index, maintains activity in the luxury segment, with high prices and good transaction rates for multi-million shekel properties.