The town where you will find a new garden apartment for 1.3 million shekels

The real estate market is in a slowdown, but in the periphery, it is still possible to find apartments at reasonable prices. In cities like Harish and Afula, one can find new apartments at prices lower even than in Ofakim and Netivot. In some cities, the real estate market has almost frozen — prices of 14–15 thousand shekels per sq. m, which are rare to find on the Gedera–Hadera line, still exist.

According to Tax Authority data, a number of transactions made recently point to particularly low prices in the periphery, and especially in the city of Arad. For example, a garden apartment of 103 sq. m (4 rooms) was sold for 1.3 million shekels. These are prices that do not exist today in Israel, not even in Harish and Afula. It seems that the low demand for apartments in Arad compared to other cities in the south causes the price to remain low.

Prices of new apartments in Arad, especially off-plan, range between 14–16 thousand shekels per sq. m. In recent transactions in the Eyal Peretz project, one of the only projects in the city where off-plan apartments are sold, a 4-room apartment of 101 sq. m was sold for 1.45 million shekels — a little more than 14 thousand shekels per sq. m. In contrast, garden apartments are sold at a price of about 16 thousand shekels per sq. m, but when including a quarter of the garden area (i.e., at a value of 25% of the built area), the price drops.

And what about detached houses? On HaIrusim Street, a detached house under construction of 192 sq. m was sold this year for 2.76 million shekels — a price that is hard to find in neighboring cities. When one is willing to settle for a 4-room apartment on a low floor, the threshold drops even further. In second-hand transactions, the price sometimes (rarely) drops below the 14 thousand shekels per sq. m threshold.

We checked the situation in neighboring Yeruham, and the situation is quite similar. There are almost no new projects in the city, but we found 6-room apartments sold off-plan that will be ready in 2028 at prices of 2.23 million shekels. These are large apartments of 148 sq. m, so the price reflects about 15 thousand shekels per sq. m. In projects that are nearing the end of construction, prices are slightly higher and can reach 16–17 thousand shekels per sq. m, but in the second-hand market, everything is open. Apartments sold recently reflect prices of 12–13 thousand shekels per sq. m. A garden apartment of 116 sq. m was recently sold for 1.59 million shekels.

Recent transactions in Arad:

1. Eyal Peretz, 134 sq. m, 5 rooms, 8th floor — 2.05 million shekels (15,298 shekels per sq. m)

2. HaIrusim 9, 192 sq. m, 6 rooms, detached house — 2.76 million shekels

3. Asa HaMelech 22, 105 sq. m, 4 rooms, 2nd floor — 1.41 million shekels (13,428 shekels per sq. m)