Revealing the Current Landscape of Jerusalem’s Real Estate Market
Jerusalem’s housing market has recently exhibited a significant decline in the number of properties sold, moving away from the rapid rise seen over the past two years. Property owners seem to be holding out, hoping to get their desired property prices. However, with the Bank of Israel’s consecutive rate hikes leading to increased home financing costs, some property developers and private owners are compelled to sell, which may provide opportunities for buyers to get good deals. Allegedly, the cheapest homes’ prices have not changed, but the asking prices of the most expensive homes sold have decreased.
An Overview of the Available Real Estate Market
According to recent sales data, the Jerusalem housing market has seen a decline in the number of properties sold over the last few years. Between late June and late July, only 46 properties were sold, starkly contrasting the more than 500 properties sold during the same period in 2022. One of the properties sold during that period is a six-room (five-bedroom) apartment located on Kosovski Street in the Kiryat Moshe neighborhood, which has a parking space and measures 131 square meters (1,410 square feet). The apartment, built in 2005, was sold for NIS 4,846,000 ($1,348,733) in the last week. On the other hand, the cheapest property sold in the Jerusalem area over the last month was priced at NIS 1,050,000 ($282,719), significantly lower than the average price for any amount of space in the capital. The apartment is a 33-square-meter (355 square feet) one-room studio apartment located on the fourth of eight floors in a building on Afarsemon Street southeast of Jerusalem near Ramat Rachel. However, it falls outside the city’s official boundaries. Another great real estate opportunity awaits on Afersemon Street- this one is an apartment offering a picturesque living experience with lush tree-lined views right from your living room at the price of ₪1,850,000 NIS, also steal for an apartment in the Jerusalem area.
Apartment Rentals
While the prices of homes for sale have stabilized, rental prices have continued to rise steeply, increasing at an average of close to 10%, roughly double the inflation rate, according to the latest published data. Anything that can be considered a bargain is often taken without advertising by new or existing tenants. As a result, properties listed for rent are likely to be either the least attractive or the most expensive, with homes in the most popular locations being rented out very quickly. Our current sample of listings includes two-bedroom and three-room apartments that are ideal for small families or pairs of roommates.
In the Rehavia neighborhood of Jerusalem, on AlHarizi Street, a three-room apartment measuring 65 square meters (700 square feet) is currently advertised for NIS 7,150 ($1,925) monthly. The apartment is not furnished, does not include parking, and the bedrooms are described as being on the smaller side.
In conclusion, Israel’s housing market is navigating a shifting landscape, with some intriguing opportunities emerging for buyers. While property owners may be holding out for their desired prices, factors such as the Bank of Israel’s rate hikes push some to sell, potentially providing buyers with favorable deals. The discrepancy between the asking prices of the most expensive homes and the stability of more affordable options underscores the need for careful consideration in this market. On the rental front, prices continue to rise, making bargains scarce, especially in popular locations. If you need guidance or assistance in navigating this dynamic market, don’t hesitate to contact Gov Ari Real Estate Agency Jerusalem. Our team is here to help you make informed decisions and find the best housing solutions tailored to your needs. Contact us today to embark on your housing journey with confidence.
