Yad2 data reveals: The neighborhoods where rental prices have surged
Yad2 data shows that in the Beit HaKerem neighborhood of Jerusalem and Sarona in Tel Aviv, rental prices have risen by double-digit rates over the past year, significantly exceeding the national average of 4.4%. The increase for three-room apartments has been sharper than for four-room units, while some Tel Aviv neighborhoods have actually seen price declines.
Rental prices in Israel have been rising steadily for some time. From October 7, 2023, to March 2026, an average increase of about 7% was recorded nationwide. According to the latest Central Bureau of Statistics data for June, the annual rate of increase in rent stands at 4.4%, while the apartment maintenance index rose by 1.8% over the past year.
To understand the impact of this trend, we analyzed data with the Yad2 group to identify neighborhoods where rental prices have risen most prominently. In some areas, this growth reached double-digit percentages, translating to tens of thousands of shekels annually. It is important to note that these figures represent asking prices, not necessarily the final amounts agreed upon in signed contracts.
Three-room apartments outpace four-room units
Yad2's analysis shows that monthly rent for three-room apartments increased at a higher rate than for four-room units, adding hundreds of shekels to monthly expenses in both cases.
The most significant annual increase (17%) was recorded in the Beit HaKerem and Ramat Beit HaKerem neighborhoods in Jerusalem for three-room apartments: the average rent rose from 5,576 NIS in July 2025 to 6,524 NIS in July of this year (a gap of 948 NIS).
In Givat HaRakafot (Kiryat Ata), the average rent for a three-room apartment jumped from 2,325 NIS to 2,663 NIS (+338 NIS). However, the largest monetary gap was recorded in the Ganei Sarona neighborhood in Tel Aviv, where average rent for a four-room apartment rose by 10.8%—from 12,066 NIS to 13,371 NIS (+1,305 NIS).
In the "Quiet Center" area of Petah Tikva, a 10.5% increase was recorded for four-room apartments, rising from 6,054 NIS to 6,690 NIS (+636 NIS).
Tel Aviv: A mixed picture
Despite the general trend, some Tel Aviv neighborhoods have seen rental price declines. For instance, in the northern and southern parts of the "New North" area, rent for four-room apartments fell by 5–5.5% (over 600 NIS per month). In Neve Hen, prices for three-room apartments dropped by 11.7% (about 635 NIS), while Yad Eliyahu saw a 7.5% decrease (about 500 NIS).
Sima Azulay, CEO of Second-Hand Real Estate at Yad2, notes: "The rental market is no longer moving uniformly. Local demand, urban renewal, and accessibility influence prices more than ever. For apartment seekers, it is crucial to examine the market at the neighborhood level, as the distance between two adjacent areas can result in a gap of over 1,000 NIS in monthly rent."
Talia Koren, partner at Re/max Advantage, adds: "There is a direct link between high apartment prices and rising rents. Many people who cannot afford a mortgage turn to renting, which drives up demand. The rise in three-room apartment prices reflects a shift toward smaller units or more affordable cities like Bat Yam and Petah Tikva, where public transport infrastructure is improving."
