Lod Apartment Bought Under Affordable Housing Program Sells for Over One Million Shekels Profit
A five-room apartment measuring 131 square meters at 1 Moshe Rabbeinu Street in the Ganei Ayalon neighborhood of Lod was sold for 2.2 million shekels. This apartment was originally purchased through the Israeli government's "Price for Residents" affordable housing program in a project launched in 2016, with occupancy granted in late 2018. The Ganei Ayalon neighborhood, also known as the Ahisamach Complex, was planned to accommodate a growing Haredi population, with housing units increased from 3,000 to 3,600 in a 2015 amendment to the original 2006 plan.
The project, developed by Zohar and Tzafrir Sharbat, saw 340 apartments sold in 2016 at an average price of approximately 850,000 shekels. Recent sales show significant price increases: three-room apartments bought for 660,000 shekels now sell for around 1.67 million shekels, four-room units from 808,000 to 2 million shekels, and five-room apartments from 910,000 to 2.2 million shekels. According to the Treasury's chief economist, nearly half of the lottery winners in this project sold their apartments within the last three years, realizing an average real capital gain of about one million shekels.
Price per square meter in Lod has slightly decreased over the past year, averaging 20,500 shekels, with Ganei Ayalon apartments priced lower at about 17,000 shekels per square meter due to the neighborhood's demographic and the prevalence of affordable housing units. Despite a general oversupply of roughly 3,100 unsold new apartments in Lod, prices in Ganei Ayalon have remained stable, attributed to steady demand from the Haredi and religious communities from Jerusalem, Elad, and Modi'in Illit.
A local real estate agent, Gal Ben David from Mishkan Real Estate Agency, noted that Ganei Ayalon's limited size and specific population demand prevent an oversupply situation, supporting stable prices. He added that the apartment's location facing an open park area also contributes positively to its value. This case exemplifies the substantial capital gains possible from early participation in government-subsidized housing programs despite broader market challenges.
