Rental prices rise in Israel – not without surprises
The average cost of renting a home in Israel has exceeded 5,000 shekels for the first time, reaching 5,086 shekels per month. Increases were recorded in all 18 largest cities, with the most aggressive growth shifting from the center to the periphery. Beit Shemesh led the rate of increase (+10%). Experts attribute this to stagnation in the purchase market and the withdrawal of private investors.
The average cost of renting a home in Israel has surpassed the 5,000 shekel mark for the first time, reaching 5,086 shekels per month. Increases were recorded in all 18 largest cities across the country. The main surprise was the shift in the epicenter of growth from the central district to the periphery. The absolute leader in the rate of increase was Beit Shemesh, where rents surged nearly 10% (to 4,893 shekels). Tel Aviv remains the traditional leader in absolute cost (7,398 shekels), followed by Herzliya (6,732) and Kfar Saba (6,118). At the other end are Haifa (3,403) and Be'er Sheva (3,167). Experts, including former chairman of the Israel Appraisers Association Oad Danos, link the rise to stagnation in the purchase market due to high interest rates and the withdrawal of private investors. CEO of RE/MAX Israel Bernard Raskin predicts further competition among renters and calls on the state to create incentives for investment in rental housing.