Israeli Housing Market: Where to Find Apartments Between 1.5 and 2 Million NIS
A new analysis of Israeli real estate data reveals where buyers can still find apartments priced between 1.5 and 2 million NIS, highlighting stark regional disparities and the impact of older housing stock.
Housing prices surged across Israel in 2021 and 2022, effectively erasing apartments priced under 2 million NIS in many cities. The average price for an apartment nationwide has climbed to around 2.4 million NIS, while the sweet spot for most buyers remains around 2.2 to 2.5 million NIS.
Where to Find Apartments for 1.5-2 Million NIS
A recent analysis of Yad2 data reveals where buyers can still find properties in the 1.5 to 2 million NIS bracket. Surprisingly, cities like Ariel feature prices that some might expect to be lower, while Lod offers a relatively accessible average of 1.75 million NIS. Meanwhile, acquiring an average apartment in Tel-Aviv requires roughly 350 monthly salaries.
These averages encompass both new developments and second-hand 4-room apartments, meaning older neighborhoods pull the overall figures down. For instance, while Kiryat Bialik and Kiryat Motzkin show averages hovering around 1.7 million NIS, newer developments like Karmei Gat command significantly higher figures, with average 4-room apartments priced around 1.87 million NIS.
Regional Disparities and Safety Infrastructure
The data highlights a clear focus on the periphery, with prices rising as locations move closer to major central hubs. Cities such as Or Akiva, Ashdod, and Hadera remain highly sought-after due to their geographic advantage. In Ashdod, newly built homes are substantially more expensive, though older districts lower the statistical average. Similarly, Eilat records an average of 1.56 million NIS largely due to a high volume of older stock, whereas Haifa sees lower averages driven by the fact that approximately 70% of its apartments lack a reinforced security room (MAMAD).
Affordable options in the 1.5 to 2 million NIS range can still be found in Netivot, Safed, Kiryat Ata, and Kiryat Yam, the latter seeing active urban renewal. At the higher end of the spectrum, Modi'in stands out with an average 4-room apartment reaching 3.23 million NIS, reflecting its status as a relatively modern city established in 1996.
