Rental prices for apartments without a MAMAD are crashing: the gap reaches 35%
Apartments without protected spaces have become the default choice for tenants unable to afford higher rents. In some cities, the price gap has peaked since the start of the war. A report by the Yad2 website highlights the growing disparity in the secondary housing market.
Outside of Tel Aviv, rental prices for new apartments have begun to stabilize in recent months. In Tel Aviv, market weakness is still reflected in many projects, and due to the city's size, this pulls the overall price index down.
Apartment prices are falling primarily in the secondary market, which also impacts rental rates. This is not necessarily because people prefer new apartments, but due to the MAMAD (protected space). Many secondary market apartments, especially those built before 1992, lack a MAMAD. The national trauma experienced since October 2023 has significantly reduced the value of apartments without this protection. It is estimated that the difference between an almost identical apartment built before and after 1992 can reach 10%-15%. Sellers and landlords of secondary apartments without a MAMAD are forced to compromise as demand remains low.
A check conducted by the Yad2 website shows that rental differences between apartments with and without a MAMAD can reach up to 37%, particularly in cities like Ashkelon and Beersheba, which are more sensitive to missile fire. In cities like Bnei Brak, the difference is less pronounced: in 2025, the gap was 4.5%, while in 2026 it stands at 14.2%, potentially reflecting concerns over the second round of conflict with Iran.
The Yad2 data shows that people are avoiding apartments without a MAMAD. In cities such as Bnei Brak (a 6.3% decrease) and Bat Yam (2.6%), a trend of falling rental prices for non-protected apartments is evident, while new apartments show a significant price jump (2.4% in Bnei Brak, and 11% and 10.2% in Givatayim and Tel Aviv, respectively).
In Haifa, a jump of 12.3% was recorded. Given that these cities absorbed numerous barrages during the war, it is likely that security concerns have heavily influenced relocation patterns. In Ramat Gan, the rental difference between an apartment with and without a MAMAD has climbed to over 30%.
Finally, rental data from Jerusalem illustrates the widening gap: prices for apartments without a MAMAD fell by 0.8%, while new apartments rose by 4.9%, despite the market slowdown. The difference between the two categories increased from 14.4% in 2025 to 21% this year.
While the gap between different types of apartments is rising, it is important to note that comparisons are often made between new, ready-to-move-in units and older, secondary market apartments, which naturally widens the margin. It is estimated that for almost identical apartments in the same neighborhood, the price difference due to the presence of a MAMAD hovers around 10%.
