Ben Gurion Airport Region Real Estate: Analyzing Housing Price Gaps
A review of real estate prices around Ben Gurion Airport reveals a 60% gap between Modi'in and Lod. Industry experts weigh in on whether urban renewal and infrastructure projects will close the divide.
Housing prices in Israel's central region remain high, though a market slowdown—specifically a drop in transaction volume, particularly in the Tel Aviv area—has led to a slight price correction. A review of marketing prices and recent transactions reveals significant gaps between cities located around Ben Gurion Airport.
Currently, new four-room apartments in Modi'in sell for 3.65 to 3.75 million NIS, while similar properties in Yehud go for approximately 3.5 million NIS. In Shoham, prices stand at 3.4 million NIS, whereas in Lod and Ramla, prices hover between 2.25 and 2.35 million NIS. The central question is whether this gap is permanent or if it will shift as these cities continue to develop.
The Gap Around Ben Gurion Airport
Despite their geographical proximity, marketing data and professional estimates point to stark price differences. The gap reaches roughly 1.4 million NIS—or about 60%—when comparing Modi'in to Lod. The housing supply in Lod is notably high due to massive construction in new neighborhoods, including the International Quarter and Nofei Ben Shemen. As previously analyzed, this large supply has led to a market slowdown and subsequent concessions by contractors.
Naturally, these price gaps are influenced by the socioeconomic status of the residents and the level of municipal development. A large portion of neighborhoods in Lod and Ramla have historically suffered from neglect, which is reflected in property values. While both cities have undergone significant development in recent years—including new neighborhoods, urban renewal, and investments in infrastructure and transportation—comparing their overall development level to that of Modi'in remains difficult.
Urban Renewal and Future Potential
"In my estimation, the price gaps we currently see between Ramla and its surrounding cities will narrow in the coming years. When people look at Ramla solely through the lens of current housing prices, they miss the scale of change planned for the city and its surroundings," says Alex Mariash, CEO of Hachsharat HaYishuv Urban Renewal, a company advancing 3,000 residential units in Ramla.
Mariash explains that the transformation involves multiple major growth engines operating simultaneously. Alongside thousands of planning and urban renewal units, regional developments such as the 'Terminal 6' employment park and the relocation of the IDF's primary recruitment base (Bakum) to Ramla are expected to bring tens of thousands of daily visitors to the area. This influx requires upgrades to transportation, infrastructure, commerce, and municipal services.
Shoham as an Island of High Prices
Price disparities reflect not only the cost of apartments but also the maturity of the urban environment. According to Reuven Buskilla, an Anglo-Saxon franchise owner in Shoham, the town acts as a high-price island near the airport. "Shoham behaves as a unique market. A 4-5 room apartment currently sells for 3.5 to 4 million NIS, while a private home on a 400-square-meter plot can reach 7 million NIS," he notes, citing high demand coupled with exceptionally rigid supply and geographic limitations.
Local experts emphasize that future narrowing of price gaps depends heavily on sustained investments in infrastructure, public transportation, and employment hubs rather than residential construction alone. For homebuyers and investors alike, the market requires careful consideration of both current affordability and long-term municipal transformation.
