Rents rising in Israel but not everywhere

Despite a national trend of rising rents in Israel, a localized oversupply of new apartments in specific neighborhoods is causing rents to drop. Globes identifies areas like Netivot, Rishon LeZion, and Jerusalem where a glut of rental units is forcing landlords to lower asking prices by hundreds of shekels.

Amid a national trend of steadily rising rents in Israel, a localized oversupply of new apartments in specific neighborhoods is creating a counter-trend of falling rents. The Central Bureau of Statistics' July 2026 price index shows rents for renewing tenants rose 2.6%, while new tenants saw a 4.7% increase. However, Globes reports that the rental market is composed of hundreds of 'micro-markets,' and in certain areas a temporary glut is emerging. Snir Group CEO Nir Shmoul identifies the Ramot Yoram neighborhood in Netivot, where 56 apartments are listed simultaneously, forcing asking rents 300-500 shekels below market rate. In Rishon LeZion's Nuriyot neighborhood, nearly 80 available apartments have driven prices down 300-600 shekels. Similar gluts are found in Jerusalem's Mordot Arnona project, which added 778 units, and Kiryat HaYovel. The phenomenon is attributed to three factors: new neighborhoods with large-scale construction marketed to investors, high-density government-subsidized projects where winners rent out units, and large urban renewal projects releasing many replacement apartments simultaneously. Israel Realtors Association chairman Itzik Levy explains that landlords prefer to lower rents rather than leave units empty, as each vacant month represents an 8.3% loss of annual income. The oversupply is described as temporary, lasting until the market absorbs the excess inventory.