Prices Drop as Psagot Afek Neighborhood Sees Wave of Subsidized Apartments Enter Market

Psagot Afek, a rapidly growing neighborhood in Rosh HaAyin, has seen a significant decline in housing prices due to a large influx of subsidized apartments entering the resale market. Designed for approximately 15,700 housing units, the neighborhood now houses around 40,000 residents, mostly young and educated families who purchased homes through the "Price for Residents" program between 2016 and 2020. This wave of subsidized apartments finishing their five-year ownership lock-up period has led to a roughly 5% drop in the median price per square meter over the past year, with four-room apartments averaging around 2.31 million shekels and a price per square meter near 21,700 shekels.

Recent transactions illustrate the market trend: a three-room apartment of 80 square meters sold for 2.02 million shekels, while four- and five-room apartments ranged between 2.3 million and 2.55 million shekels. Rental prices average about 6,800 shekels per month, yielding a gross return of approximately 2.9% annually. The median asking price for four-room apartments aligns closely with actual sale prices, indicating sellers have adjusted expectations to current market conditions.

Psagot Afek is divided into six sectors, with most already built and inhabited, while construction continues in others. A new employment complex is under development to reduce residents’ need to commute outside the neighborhood, which currently causes significant traffic congestion due to limited road access. Public transportation options include bus lines to Tel Aviv and a nearby train station serving as a key transit hub since June 2026.

Despite lower prices compared to the Tel Aviv metropolitan area, buyers face long commute times of up to 65 minutes to central Tel Aviv. The neighborhood offers good educational infrastructure with six elementary schools and over thirty kindergartens, alongside parks and community centers. The ongoing release of subsidized apartments is expected to continue increasing supply and pressure prices downward over the next two years, prompting potential buyers to consider whether they are entering the market amid or after this wave.