Study Finds Prices of Older Israeli Apartments Without Security Rooms Rise Faster Than Those With Them
A comprehensive analysis by attorney and appraiser Rotem Zilber, founder of BYNDbiz, reveals that since October 2023, prices of older Israeli apartments without reinforced security rooms (Mamad) have increased faster than those with such protection. This finding is surprising given the heightened demand for Mamad-equipped apartments following recent missile exchanges with Iran and increased security concerns.
BYNDbiz analyzed 111,000 real estate transactions reported to the Israeli Tax Authority, comparing apartments built before 1990 without Mamad to second-hand apartments built between 1996 and 2022 with Mamad. The data showed that prices per square meter of pre-1990 apartments rose by 11.2% cumulatively from 2023 to 2025, while Mamad-era apartments increased only 2.6% in the same period. This trend was consistent in 27 out of 35 cities sampled.
Despite a surge in rental demand and premiums for Mamad apartments, such as a 200% increase in demand measured by Madlan in November 2023 and a 20% rental premium reported by WeCheck, the resale market tells a different story. Zilber explains that the market currently values two distinct factors: immediate residential security, which favors Mamad apartments, and the potential for urban renewal projects, which boosts the value of older apartments without Mamad. The latter often represent opportunities for future redevelopment, including new buildings with Mamad, especially in areas expected to undergo renewal.
This dynamic has led to a shrinking price premium for Mamad apartments, from about 25% in 2023 to 16% by early 2026. Additionally, the growing supply of new apartments, often competing with second-hand Mamad apartments, limits price increases for the latter. Zilber concludes that while security concerns have increased demand for Mamad apartments, the resale market reflects a complex balance between current safety and future development potential, cautioning against valuing apartments solely based on the presence of a Mamad.
Summary data from real estate platforms and government reports support these findings, showing a sharp decline in rental demand for non-Mamad apartments and a significant rental price gap favoring Mamad units. However, the resale market's slower price growth for Mamad apartments highlights the influence of urban renewal prospects and new housing supply on pricing trends.
