Housing Market Trends: Apartment Prices Remain Stable in Southern Israel
Property prices remain stable in Ofakim and Netivot due to new housing supply and tax perks. Recent real estate transactions highlight affordable alternatives in Harish, Kiryat Gat, Ashdod, and Beersheba.
The extensive supply of apartments in the Ofakim and Netivot areas has kept prices stable and even slightly lower in some of the new neighborhoods. Ofakim experienced a wave of price increases and at one point even managed to surpass Tel Aviv in sales volume. The Afiki Nahal neighborhood is developing rapidly, and combined with an 18 percent tax benefit, the public is thinking twice before buying in Beersheba and considering purchases in Dimona, where the tax benefit is identical. In Netivot, the tax benefit stands at 16 percent.
Affordable Housing Alternatives
There are cities where housing prices are lower, such as Harish. While not universally popular among buyers and featuring some vacant and rental apartments, it remains an option for those seeking a new apartment at a reasonable price. A recent transaction involved a 3-room apartment on Teena Street measuring 78 square meters with a 17-square-meter balcony, located on the 4th floor out of 5, featuring an elevator, parking, and a secure room (mamad). While such a property in Tel Aviv would approach 4 to 5 million shekels and cost hundreds of thousands more in Beersheba, it sold for 1.21 million shekels.
Prices in Harish peaked around 15,000 to 16,000 shekels per square meter and now hover around 14,000 shekels per square meter, offering a sensible alternative in less central locations.
Recent Real Estate Transactions
Recent market data highlights several notable transactions across various cities:
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Kiryat Gat: A 3-room apartment on Nahal Naaman Street, 70 square meters with a 12-square-meter balcony, 1st floor out of 4, sold for 1.5 million shekels.
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Ashdod: A 3-room apartment on Natan Elbaz Street in Vav Quarter, 88 square meters, sold for 1.55 million shekels; a 5-room apartment on Ha-Afrasmon Street in Tet-Vav Quarter, 157 square meters, sold for 2.66 million shekels.
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Beersheba: A 2-room apartment on Yitzchak Rager Street in Quarter D, 50 square meters, sold for 690,000 shekels; a 5-room cottage on Almog Street in Neve Noy, 180 square meters built on a 370-square-meter plot, sold for 2.52 million shekels.
