The neighborhood in Tel Aviv where you will pay less than 5,000 shekels in rent

Rental prices are on the rise. In the past, Israelis would ask themselves whether to pay 7,000 shekels for a spacious apartment in Tel Aviv. Today, they are renting apartments at a much higher price — and not in Tel Aviv. The rise in rental prices creates a problem for tenants: some want to purchase an apartment, while prices in some areas remain high, and others do not have enough equity. Sometimes, landlords use this fact to their advantage and raise the price.

The change could also be seen in the last month. Those renewing contracts are paying 2.6% more than last year, and new tenants are paying 4.7% more. If housing prices fall by a low percentage and rental prices rise, this could create more demand for purchasing an apartment, but it also depends on the equilibrium point and the financial ability of buyers to pay high equity.

The rates of change reflect an approximation of the annual rate of change in rent. That is, according to the Central Bureau of Statistics method, the rent does not change for the vast majority of tenants who rent apartments without an indexation mechanism.

The two neighborhoods where 3-room apartments are seeing a significant decline are in Tel Aviv — Yad Eliyahu and Neve Hen, which is the only neighborhood in the country where rental prices are falling by nearly 12% (although the price is very low, 4,790 shekels) and at a double-digit rate. In Yad Eliyahu, where price declines were also recorded in the rental prices of larger apartments, a decrease of about 7.5% was recorded — 6,180 shekels for an average apartment.

The neighborhood where prices fell by the lowest rate in this table is Neighborhood 11 in Beersheba. This is a surprising figure. An apartment for rent in this neighborhood in Beersheba costs a little over 2,600 shekels, and yet, a decrease of more than 2% was recorded over the past year — probably against the backdrop of low demand for apartments without a MAMAD (protected space), just as is happening in the Neve Hen neighborhood in Tel Aviv, where there are quite a few old apartments.

Also in the religious neighborhood in Haifa, Kiryat Shmuel, there is a decline in small apartments. The religious public prefers more spacious and larger apartments, due to the number of children being higher than average, and perhaps this is the reason for the decline. Also in the city center of Nahariya, a decline was recorded, and an average 3-room apartment for rent will cost 2,930 shekels per month. Rental prices are also falling in the Neot Shaked neighborhood area in Netanya — where the average price has fallen below the 4,300 shekel threshold. This is happening even though part of the area is being renewed.