2 million shekels: what you can buy today vs. what you could buy in 2021

An analysis of 1,340 transactions in six Israeli cities shows that for two million shekels today, you can buy a significantly smaller apartment with fewer rooms than five years ago. In Bat Yam, the area shrank by 33.2%, and in Petah Tikva, more than one room disappeared. The study was conducted by appraiser Matan Lehyani.

An analysis of 1,340 residential real estate transactions in six Israeli cities, conducted by appraiser Matan Lehyani for mako, demonstrates a sharp decline in the purchasing power of two million shekels over five years. The study compared 2021 deals with transactions from the past year in the range of 1.7 to 2.2 million shekels in Haifa, Kiryat Yam, Kiryat Ata, Bat Yam, Petah Tikva, and Ramat Gan. In every city, the same budget today buys fewer rooms and square meters. The largest reduction in area was recorded in Bat Yam — by 33.2% (from 92 to 61.5 sq. m), while in Petah Tikva more than one room disappeared (from 4.12 to 3.04). Even in Haifa, where the decline was minimal, the area shrank by 11.6% (from 112 to 99 sq. m). Experts note that buyers are forced to accept smaller spaces and compromises on floor level and finishes, but try to stay in their desired neighborhood. Developers, according to market participants, are revising projects toward more compact housing.