Affordable homes in Israel are becoming increasingly scarce as property prices rise.
Overview of Current Property Prices
In the first quarter of this year, the average price for an apartment in Israel reached NIS 2.23 million (approximately $614,700). This marks a 3% increase compared to the last quarter of 2023.
Challenges for Potential Buyers
This data shows a growing concern for many buyers. In many areas, even a small or poorly maintained apartment requires at least one and a half to two million shekels. So, what options exist for those without these amounts?
Finding Affordable Homes in Israel
Despite rising prices, some areas in Israel still offer more affordable properties.
Yeruham: Potential for Future Price Increases?
Yeruham, in the south of the country, currently offers some of the most affordable homes in Israel. Buyers can find three-room apartments for as low as NIS 450,000 ($124,038). These are mostly small apartments, but larger ones are also available at low prices.
A four-room apartment was recently listed for NIS 450,000. It features 93 square meters according to the property tax authority and 78 square meters in the Tabu registry. The realtor describes it as a spacious apartment in a desirable area. It does need renovation, but afterward, it could rent for NIS 1,800 to NIS 2,000 per month, or even more, depending on the quality of the renovation.
Over the past two years, sellers have listed some apartments in Yeruham for as low as NIS 380,000. These properties often need significant repairs. While prices in Yeruham have risen, the increase has been moderate. The lack of new developments suggests this trend may continue gradually.
Haifa: Trends in Affordable Housing
Haifa might be one of the few central cities where you can find an affordable homes in Israel
Haifa might be one of the few central cities where you can still find affordable homes in Israel. In Haifa, affordable apartments under half a million shekels still exist, though they are becoming increasingly rare. These properties are usually in older buildings that need renovation. They tend to be small, like studio or one-bedroom units. These apartments offer a lower entry point for buyers, but they often require extra investment in repairs or updates. As demand for affordable housing in Haifa rises, the availability of such properties will likely decrease, leading to gradual price increases.
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