Haifa 2-Room Apartment with Massive Terrace Sells for 1.55 Million NIS
A 2-room apartment in Haifa featuring a massive 63-square-meter terrace has sold for 1.55 million NIS. Appraisers note the price reflects a reasonable 25,000 NIS per square meter for the prime location.
A unique 2-room apartment spanning 40 square meters of property tax area (43 square meters registered in the Tabu) on 24 Elchanan Street in Haifa's Mercaz HaCarmel has been sold for 1.55 million NIS. What makes this property particularly unusual is its massive 63-square-meter terrace. Additionally, the apartment's bedroom also serves as its secure reinforced room (mamad).
The Haifa Two-Room Apartment Market
Two-room apartments in Haifa represent a highly diverse market with a very wide range of prices, reflecting the city's broader real estate trends. Since the beginning of 2026, the Tax Authority has recorded more than 200 transactions involving such apartments, the vast majority of which are older properties.
The cheapest apartments of this type are primarily located in Hadar HaCarmel and downtown Haifa (Ir HaTachtit). Most of these were built in the 1950s, suffer from poor maintenance, and start at 350,000 NIS. On the Carmel ridge, prices are three to four times higher, especially for properties situated along major thoroughfares and central locations such as Horev Boulevard, Moria Boulevard, and in close proximity to Mercaz HaCarmel and Mercaz Ahuza, where older apartments have traded between 1.6 million and 2 million NIS.
According to market assessments, these high prices stem from the potential of such properties to be converted into clinics and commercial shops. Meanwhile, new apartments of a similar size sell for between 1 million and 1.7 million NIS, depending heavily on location.
Project Background and Architecture
This transaction places the analyzed apartment at the very upper tier of pricing for small apartments in the city. The building is located in Mercaz HaCarmel near the intersection with Wedgwood Street, a central axis connecting Mercaz HaCarmel to Hadar HaCarmel.
The project was initiated by Paibish Building and Development in the late 1990s, involving the demolition of an old house and the construction of a six-story building containing 11 housing units. Building files show that the construction permit was issued in 1998, and a certificate of occupancy (Form 4) was granted in 2002. At some stage, the project was transferred to B. Na. Building and Investments.
It appears that the steep topography of the plot and its narrow street frontage dictated a tiered architectural design, featuring a highly unusual apartment mix and layout for its time. This is reflected in two main characteristics. First is the apartment sizing: most units in the project are small, with a registered area of 43 to 50 square meters, while only the upper floors feature 78-square-meter duplexes.
Second is the absence of penthouses. While duplexes in standard developments are typically awarded large terraces to function as penthouses, in this building, the two largest terraces were deliberately allocated to the apartments on the third floor. Interestingly, the building's garden apartment is located on the second floor and comes with a quarter-dunam courtyard.
Recent Transactions and Pricing Analysis
Three transactions have recently taken place in the building, with the latest being the analyzed sale. In the other two deals, executed in the second half of last year, a duplex sold for 1.65 million NIS and a 57-square-meter apartment sold for 1.56 million NIS.
The fundamental question raised by this transaction is who requires such a small apartment with such an enormous terrace. Analysts suggest the target audience is relatively niche, as most buyers would settle for a terrace a third of that size and would be unwilling to pay a heavy premium for the remainder.
Calculations show that the equivalent price per square meter—factoring in the terrace space—reaches approximately 25,000 NIS. Comparing this to a transaction conducted about a year ago on the floor above involving a 3-room apartment larger by 17 square meters, the value of the large terrace in the analyzed unit nearly matched the cost of the extra room upstairs, where values averaged around 26,000 NIS per square meter.
Conversely, while the duplex commanded the highest absolute price among the three recent deals, its per-square-meter calculation was lower at roughly 21,000 NIS. This serves as another example of how duplexes remain an unflavored product in the Israeli market. Is the analyzed apartment's price reasonable? Analysts firmly believe it is, considering the building's prime location, previous transactions in the structure, overall city pricing, and the fact that the terrace accounts for roughly 30% of the total value.
Appraiser's Perspective
"This is an interesting transaction because there is a relatively limited supply of small apartments offering compact living space alongside a massive terrace, which provides the property with added value and effectively expands its hosting and usage options," says appraiser Avi Avni.
"Apartments of this type may be particularly suited for individuals and couples seeking a property in a high-demand area who do not require expansive indoor living space but place high importance on significant outdoor areas. Additionally, they may attract investors looking for a small asset in a sought-after location, as well as older demographics wanting a compact, easily maintainable home without sacrificing outdoor breathing room.
"The analysis of the transaction yields an equivalent value of about 25,000 NIS per square meter, which in my estimation reflects a reasonable valuation given the property's location, apartment type, and unique characteristics."
