Second-Hand Real Estate Market Shifts as Safe Rooms Drive Demand and Prices
The Israeli second-hand real estate market is seeing steep price drops for apartments lacking safe rooms, while cities like Harish experience a surprising sales boom due to affordable prices and secure housing.
The second-hand real estate market is experiencing significant shifts, largely driven by a single crucial factor: the safe room, known as the mamad. The ongoing conflict has taught many residents a harsh lesson after they were caught unprepared, having to rush to communal stairwells or public shelters instead of accessing a secure private shelter.
This security concern has led to the emergence of a long-dormant market segment: housing downsizers. Many individuals preferred to sell spacious apartments lacking a mamad and move to more modest, protected properties. Consequently, second-hand apartments without a safe room have recorded steep price drops. Investors have long abandoned this segment, knowing that demand for unprotected homes will continuously shrink.
The Impact of Quick Liquidation on Prices
Sellers who bought a new property before selling their old, unprotected apartment have been forced to slash prices significantly, often offering double-digit discounts to achieve what appraisers call "rapid realization."
Surprisingly, the second-hand market in Tel Aviv showed resilience. Despite security escalations, transactions rose by nearly 22%, accounting for about 100 more apartments sold. Furthermore, significant double-digit growth in second-hand transactions was registered across most surveyed cities, including Petah Tikva, Beersheba, Ashdod, Rishon LeZion, Bnei Brak, Modi'in, Bat Yam, and Harish.
The Surprising Boom in Harish
Harish emerged as the biggest surprise in the market. Between May and July, 217 apartments were sold—a substantial jump compared to the 143 units sold in the preceding three months.
"Harish offers remarkably low prices relative to the national average, making it an attractive destination for buyers seeking affordable housing with modern safety standards," real estate analysts noted.
Prices in Harish during these months ranged between 12,000 and 14,000 NIS per square meter. Since Harish is a relatively new city, most buildings constructed after 1992 feature a mamad. Four-room apartments were sold in the range of 1.3 to 1.4 million NIS, offering values hard to find in other regions.
Recent deals in Harish highlight these price gaps:
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Tzevetta Harish: 118 sqm, 5 rooms, 2nd floor – 1.59 million NIS (13,432 NIS per sqm).
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Megiddo Project: 95 sqm, 4 rooms, 3rd floor – 1.3 million NIS (13,684 NIS per sqm).
