Real estate for investment. Do not look in the heart of Tel Aviv (pictured), an area where NIS 2 million will hardly buy a one-room apartment (Photo: Reuven Castro)
Special for Passover: Do you have money for an apartment to invest - and are you looking for the location that will give you the highest return?
The Madeleine website mapped tens of thousands of transactions for us and found the most attractive places for an investment of up to NIS 2 million, meaning - not only for "heavy" investors in real estate, but also for those whose apartment they need to live in (for example, a three or four room apartment in the center) is expensive more than the budget available to them, and therefore they are looking for an apartment that will yield as high a monthly return as possible and whose value will only increase. When talking
about neighborhoods with potential for investment, they are usually talking about the rental yield they give on average (that is, the profit from renting the property, which is calculated by dividing the annual rent by the property's value ).
Despite this, there are other variables that ultimately determine whether the investment is good - first and foremost the capital return over three years (that is, the increase in the value of the apartment), but also three criteria that help make sure that the apartment does not remain empty (thus eroding the investment): the percentage of the addition of future apartments to the environment (as an indication on the one hand of the renewal of the neighborhood and on the other hand to ensure that there will not be too much supply in the near future);
The percentage of rental ads compared to the number of apartments in the neighborhood (as an indication that there is not too much supply of apartments for rent);
and ratio of views to a single ad (as an indication of demand).
All of these were weighed together for the first time, while limiting the price of the property to up to NIS 2 million, and this is how the current list was created, which marks neighborhoods with high potential for investors.
Tal Kopel, CEO of Madeleine (Photo: Orit Panini)
Tal Kopel, CEO of Madeleine
: "Despite the current stagnation in the market, it is still too early to eulogize real estate as an investment channel - especially in light of the turbulent stock markets in Israel and around the world. A proper investment in real estate, in a property located in an environment where demand is rising and supply is relatively finite, can Not only to generate a nice current rental yield, but also to turn out to be a real bonanza as the property's value increases.
After conducting in-depth research and taking into account a variety of factors, we came up with a national list of neighborhoods with excellent potential, where you can purchase a property at a price of up to NIS 2 million and enjoy not only a good rental yield, but also the expected increase in value."
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Bat Galim neighborhood in Haifa (Photo: Madeleine)
Haifa - Bat Galim
Average price per square meter: NIS 25,700
Average annual rental yield: 3.3%
Capital yield 2019-2022: 45%
Percentage of additional apartments in the neighborhood: 16% in 24 projects
Awareness ratio for apartments in the neighborhood: 7%
Bat Galim is an old neighborhood in Haifa, and the only one in the city which kisses the seashore. The neighborhood was designed in 1921 by the renowned architect Richard Kaufman according to the principles of the Garden City (like many cities that were planned at the time - including Ramat Gan and Tel Aviv) and was inhabited in the 1920s during the Third Aliyah. Over the years, transportation and military infrastructures were established in and around the neighborhood that transformed
it A pleasant residential neighborhood for the city's backyard. Among other things, the Haifa port, the naval training base and the military port, the Rambam hospital, a national railway and the city's central station were established in the neighborhood and nearby.
All of these created negative effects on the neighborhood and cut it off from the rest of the city, thus preventing its development and expansion.
In recent years, the neighborhood has become a focus of interest for investors, and close to 50 (a lot in relation to the size of the neighborhood) projects of TMA 38 are planned for it - most of them demolition and construction. In addition to small residential projects, a number of large plans for the renewal and expansion of construction are being promoted in the neighborhood - including clearing it. D. The Navy, which will be demolished in favor of a new neighborhood and hotels, and two large construction evacuation projects at the entrance to the neighborhood that were recently approved and are expected to be implemented in the coming years.
Katznelson neighborhood in Rishon Lezion (photo: Madeleine)
Rishon LeZion - Katznelson
Average price per square meter: NIS 28,100
Average annual rental yield: 3.21%
Capital yield 2019-2022: 28%
Percentage of additional apartments in the neighborhood: 4%
Awareness ratio for apartments in the neighborhood: 5%
Katznelson is an old neighborhood in Rishon Lezion that enjoys a good location halfway between the center The old city to Route 4 and the west of the city. The neighborhood has private houses alongside low-rise apartment buildings and 12-story buildings.
A number of small commercial centers are scattered throughout the neighborhood, as well as larger malls, and Jabotinsky and Rothschild streets are the main commercial boulevards in the city with a variety of shops and entertainment venues.
In the coming years, work is expected to begin on the construction of the brown line - a fast bus line to the west and east of the city that will pass through Rothschild Street and is expected to start operating in 2028.
In the next decade, a metro line is also planned along Jabotinsky Street that will connect the area with sought-after destinations in Gush Dan, including employment areas in central Tel Aviv, the 'Rashonim' train station, Holon, the Yad Eliyahu Sports Hall, and Tel Aviv University.
The urban master plan states that construction in the neighborhood will be kept mostly low, with higher construction in the corners of the neighborhood, and the possibility of high construction along Rothschild Street.
Today, several evacuation-construction complexes are being promoted along Jabotinsky and Rothschild streets.
However, in preparation for the construction of the metro, a plan is being promoted to strengthen the building rights near the stations, so that apparently more significant construction will be possible in the neighborhood.
Agrobank neighborhood in Holon (photo: Madeleine)
Agrobank - Holon
Average price per square meter: NIS 29,600
Average annual rental yield: 2.94%
Capital yield 2019-2022: 23%
Percentage of additional apartments in the neighborhood: 7%
Awareness ratio for apartments in the neighborhood: 8%
Agrobank is an old neighborhood in North Holon that was built in the 1930s the previous one. The neighborhood is named after the bank that purchased the land, planned and built it. The construction in the neighborhood is mainly of low-rise apartment buildings, with some housing buildings in the west. Because of its special character, the municipality designates the neighborhood for non-strict preservation, so that the construction height will be limited and the design of the buildings will be uniform , but urban renewal will still be possible. The residents of the neighborhood enjoy an excellent location at the entrance to the city, and because it is adjacent to the Mikve Israel Agricultural School, no new construction is expected to the north and east of it. The main Kugel Boulevard is located.
These days, work is being done to build the green line of the light rail on Kogel Avenue and Sokolov Street, and when the line is operational in 2028, several of its stations will be accessible within a short walk from all the houses in the neighborhood and a quick trip to the urban employment area, and to the center and north of Tel Aviv and Herzliya Pituach will be possible.
In addition, the residents enjoy proximity to main urban thoroughfares such as Jerusalem Boulevard which leads to Route 4, the Dov Hoz Interchange on Ayalon Lanes, and Levy Eshkol Boulevard which leads to Tel Aviv, Route 44, and Route 1. The neighborhood is currently a focus for renewal, with approximately 50 TAMA
projects 38 in planning and execution, as well as a large construction clearance project promoted by the municipality and the National Authority for Urban Renewal, and it is expected to add about 2,000 new apartments, public buildings, and offices to the area. Sokolov Street is planned to become a pedestrian area after the opening of the light rail, which is expected to encourage its redevelopment as a commercial center central (similar to Jaffa Street in Jerusalem), and in addition significant construction rights for employment and residence are expected to be added along its length.
The Hadar HaCarmel neighborhood in Haifa (Photo: Knesset Spokesperson, Madeleine)
Haifa - Hadar Carmel
Average price per square meter: NIS 13,100
Average annual rental yield: 4.16%
Capital yield 2019-2022: 26%
Percentage of additional apartments in the neighborhood: 3%
Awareness ratio for apartments in the neighborhood: 9%
Hadar HaCarmel (known among Hovavia simply as the 'Hadar' neighborhood) is A neighborhood down the northern Carmel, between the center of Carmel and the lower city. Unlike most neighborhoods in Haifa, Hadar, which used to be the center of the city, is still characterized by main commercial streets, an urban market and relatively frequent public transportation. The neighborhood has mainly low (3-5 stories) and old apartment buildings, which are built in high density.
After decades of neglect and deterioration, in recent years there has been an influx of young communities into the neighborhood, who promote social activity and work with the municipality to strengthen it.
The municipality's focus on tourist and business development of the lower city also helps the potential of the nearby neighborhoods, with Hadar being the most prominent of them.
For example, in the coming years, the revival of the mythical Talpiot market is expected to begin and become a central shopping and entertainment center.
The location of the neighborhood in the center of the lower city, on the Carmelite axis - the first and only subway in Israel, and near the Metron axis - Haifa's high-speed bus lines, combined with the old nature of the construction that contributes to an urban and lively atmosphere, make Hadar an interesting destination for investment and development.
Several projects of urban renewal and new construction on abandoned lots are promoted in the neighborhood, such as the recent announcement of the evacuation of the military court complex from the neighborhood and the construction of a new residential, commercial and employment complex in its place.
The Rishonim neighborhood in Rishon Lezion (Photo: Madeleine)
The first - Rishon Lezion
Average price per square meter: NIS 26,100
Average annual rental yield: 3.12%
Capital yield 2019-2022: 17%
Percentage of additional apartments in the neighborhood: 6%
Awareness ratio for apartments in the neighborhood: 3%
The Rishonim neighborhood was established at the end of the 19th century, initially as the industrial area of The settlement, with the opening of the winery and related factories, but soon the construction of residential houses began in its vicinity. Today, the neighborhood includes low apartment buildings of about 4-6 stories in the north, and private houses in the south, with educational and public institutions in the western part. The northern border of the neighborhood is Carmel Street , along its length there are several ancient buildings, and beyond it are Gan Moshava - Rishon Lezion's historical park, and next to it is the city hall.
After decades of ignoring the city center and focusing on development to the west, in the coming decade several important transportation projects are expected to make the old center relevant again, and the Rishonim neighborhood is at the intersection of these projects.
This is the brown line - a fast bus line to the west and east of the city that will pass through Carmel Street and is expected to start operating in 2028;
The Blue Line - a fast bus line that will connect the Bilo intersection, Rehovot and Nes Ziona to the south, and the center of Rishon Lezion, Holon and Tel Aviv to the north, will pass through Herzl Street and is also expected to operate in 2028;
and metro line 1 that will connect the area with sought-after destinations in Gush Dan,
including employment areas in central Tel Aviv and Holon, the Yad Eliyahu Sports Hall, and Tel Aviv University, and is expected to operate in 2035.
In addition, the Rashonim train station is within walking distance of the southern part of the neighborhood, and in 2027 a new track is expected to open that will connect it with stations in Tel Aviv, Modi'in, and Jerusalem.
The potential of the neighborhood is far from being realized, and currently only about 15 projects of TAMA 38 are being promoted there. However, a plan to preserve the winery and build residential towers next to it is nearing the start of construction, and a new construction evacuation complex is in the initial planning stages not far away. In addition, a plot The western part of the neighborhood is expected to receive significant construction rights in preparation for the construction of the metro line.
Neve Golan neighborhood - Tel Aviv-Yafo (Photo: Madeleine)
Neve Golan - Tel Aviv-Yafo
Average price per square meter: NIS 32,600
Average annual rental yield: 2.91%
Capital yield 2019-2022: 24%
Percentage of additional apartments in the neighborhood: 18%
Rate of awareness of apartments in the neighborhood: 7%
Neve Golan and Jaffa 3 are located in South Jaffa, on the border of Bat Yam The area is mostly built of old housing buildings from the 60s and 70s of the last century, but also includes the Pardes Dakha complex, which is a rural enclave where 3 Yafo clans live. Because the Pardes area was built in an irregular manner, the street network in the neighborhood is incomplete and there is difficulty crossing To the north of the neighborhood is a green axis that includes a variety of parks and sports facilities, to the east it borders the main Jerusalem Boulevard, to the south Bat Yam, and to the west Yafet Street.
After many years of neglect and a lack of interest on the part of entrepreneurs, in recent years the area has begun to attract renewed attention thanks to the construction of the red line of the light rail that will pass through Jerusalem Avenue later this year.
The red line will allow easy and quick access to a variety of points of interest in Gush Dan, including employment and recreation areas in the city center, in Ramat Gan, Bnei Brak, Bat Yam and Petah Tikva.
A number of urban renewal projects are already nearing completion in the northern part of the boulevard, and the momentum of development is expected to move south to the neighborhood area.
In addition, the Bnei Brit community center in the south of the neighborhood was recently rebuilt with an investment of approximately NIS 30 million, and is expected to open its doors this year.
Currently, about 25 projects of TAMA 38 are being promoted in the neighborhood, but the main development is expected to be within the framework of evacuation and construction plans. Construction of up to 18 floors, and the Simcha Holzberg project which includes 24 buildings with 448 apartments, most of which will be demolished and some renovated, and will eventually include over 1,000 apartments, commercial spaces along Jerusalem Boulevard, and the addition of gardens and public buildings.
Ramat Hanasi neighborhood in Bat Yam (Photo: Madeleine)
Ramat Hanasi - Bat Yam
Average price per square meter: NIS 27,300
Average annual rental yield: 3.18%
Capital yield 2019-2022: 32%
Percentage of additional apartments in the neighborhood: 16%
Awareness ratio for apartments in the neighborhood: 3%
Ramat Hanasi is an old and large neighborhood in the southeast of Bat Yam (although it is among the city's newer neighborhoods), with a population that includes immigrants from the former Soviet Union and ultra-Orthodox families. The construction in the neighborhood includes mainly residential buildings, but these are larger and taller buildings than the classic train buildings, and the apartments in them tend to be larger. The neighborhood is bordered to the east by Nativ Ayalon, to the north by Sderot Yoseftal, to the west on Nissenbaum Street, and to the south on HaKommiyum Street - all main traffic routes.
The neighborhood is very accessible by public transportation thanks to the proximity to the main streets, which were recently paved with crosswalks, and this year the red line of the light rail will start operating in the west, which will allow quick and convenient access to the rest of the city, and to entertainment and employment centers in Tel Aviv, Ramat Gan, Bnei Brak and Petah Tikva. In addition, Residents of the neighborhood enjoy easy access to Ayalon routes thanks to the proximity to two interchanges, as well as to two Israel Railways stations. In the future, a metro line to Holon, Bekat Ono, Petah Tikva, and northern Tel Aviv is planned to pass through the north of the neighborhood. In the coming decades, significant urban renewal activity is expected in the neighborhood and its surroundings, including the Yoseftal route to the
north , and the old industrial area is slowly expected to become an area of offices and luxury residences. In the neighborhood, about 25 projects of TMA 38 are being promoted, and a number of construction evacuation projects have already been approved and are nearing implementation.
These include a huge project in the northwest of the neighborhood that will add about 1,300 apartments, a recently approved project in the center of the neighborhood that will add about 600 apartments, and a project in the southwest of the neighborhood that will add another 600 apartments.
In addition, several eviction projects are being promoted that will add about 1,600 apartments.
Although the construction of thousands of new apartments has already been promoted, the potential in the neighborhood is still great, since it has so many old buildings, and because of the improving transportation infrastructure.
Ramot Ramez neighborhood in Haifa (Photo: Madeleine)
Ramot Ramez - Haifa
Average price per square meter: NIS 18,200
Average annual rental yield: 3.6%
Capital yield 2019-2022: 20%
Percentage of additional apartments in the neighborhood: 12%
Awareness ratio for apartments in the neighborhood: 12%
The Ramot Ramez neighborhood in Haifa is located near the Technion and the University of Haifa, which is why it has become A neighborhood that is popular with students and families. It was founded as a neighborhood of workers and veterans of the permanent army, who built two-story houses in it, and later housing buildings were also added to the west and south of the neighborhood. There are small commercial centers in and around the neighborhood, but for significant shopping and places of entertainment, you have to move away from the neighborhood to the Carmel Center or one of the malls in the city
In recent years, the neighborhood has undergone significant urban renewal, mainly of the housing buildings on Habiva Reich Street.
However, the new construction causes quite a bit of inconvenience for the residents, and has already created an acute parking shortage.
A public parking lot with about 20 spaces that the municipality will build in the coming years is expected to alleviate the hardship only a little.
To the west of the neighborhood, a new neighborhood is being built - Givat Zemar, with about 1,070 apartments.
About 12 TMA 38 projects are being promoted in the neighborhood, after a similar number of projects have been completed. Also, a new building clearance project at 2-18 Brenner St. is under planning review, and for the first time in the area includes a 24-story tower.
Bat Yam Center (Photo: Madeleine)
Bat Yam center
Average price per square meter: NIS 26,800
Average annual rental yield: 3.34%
Capital yield 2019-2022: 19%
Percentage of additional apartments in the neighborhood: 22%
Awareness ratio for apartments in the neighborhood: 4%
The downtown neighborhood is one of the oldest neighborhoods in Bat Yam, and is bordered by Main thoroughfares such as Independence Boulevard to the north, Yoseftel to the south, and Ben Gurion to the west. In addition, Balfour Trading Street crosses it from north to south and along it there are a variety of options for shopping and recreation. The construction in the neighborhood is old and includes mainly apartment buildings of 4-10 stories, but also tall towers by the sea The neighborhood is well connected by public transportation, and despite the central location and dense construction, it has large public gardens.
The red line of the light rail, which is expected to open to traffic during the year, will pass through Herzl and Yoseftal streets with stations within a short walking distance of all the houses in the neighborhood.
Driving it will allow quick and convenient access to a variety of destinations in Gush Dan, including the urban employment area, Bloomfield Stadium, and entertainment and employment centers in Tel Aviv, Ramat Gan, Bnei Brak and Petah Tikva.
More than 100 TMA 38 projects are being promoted in the neighborhood, a huge number by all accounts, which indicates the tremendous potential and great interest that entrepreneurs see in the neighborhood. About a quarter of the projects are under construction, and the rest are in the planning stages. In addition, about 20 projects have been completed in recent years. In the neighborhood there are several small construction evacuation projects.
9. Bat Yam/city center
Average price per square meter: NIS 26,800
Average annual rental yield: 3.34%
Capital yield 2019-2022: 19%
Percentage of additional apartments in the neighborhood: 22%
Awareness ratio for apartments in the neighborhood: 4%
The city center neighborhood is one of the oldest in the Bat Yam neighborhoods, and is bordered by main thoroughfares such as Independence Boulevard to the north, Yoseftel to the south, and Ben Gurion to the west.
In addition, Balfour Trading Street and crossed it from north to south and along it there are a variety of options for shopping and entertainment.
The construction in the neighborhood is old and mainly includes apartment buildings of 4-10 floors, but also tall towers by the sea.
The neighborhood is well connected by public transportation, and despite the central location and dense construction, it has large public gardens.
The red line of the light rail, which is expected to open to traffic during the year, will pass through Herzl and Yoseftal streets with stations within a short walking distance of all the houses in the neighborhood.
Driving it will allow quick and convenient access to a variety of destinations in Gush Dan, including the urban employment area, Bloomfield Stadium, and entertainment and employment centers in Tel Aviv, Ramat Gan, Bnei Brak and Petah Tikva.
More than 100 TMA 38 projects are being promoted in the neighborhood, a huge number by all accounts, which indicates the tremendous potential and great interest that entrepreneurs see in the neighborhood. About a quarter of the projects are under construction, and the rest are in the planning stages. In addition, about 20 projects have been completed in recent years. In the neighborhood there are several small construction evacuation projects.
9. Bat Yam/city center
Average price per square meter: NIS 26,800
Average annual rental yield: 3.34%
Capital yield 2019-2022: 19%
Percentage of additional apartments in the neighborhood: 22%
Awareness ratio for apartments in the neighborhood: 4%
The city center neighborhood is one of the oldest in the Bat Yam neighborhoods, and is bordered by main thoroughfares such as Independence Boulevard to the north, Yoseftel to the south, and Ben Gurion to the west.
In addition, Balfour Trading Street and crossed it from north to south and along it there are a variety of options for shopping and entertainment.
The construction in the neighborhood is old and mainly includes apartment buildings of 4-10 floors, but also tall towers by the sea.
The neighborhood is well connected by public transportation, and despite the central location and dense construction, it has large public gardens.
The red line of the light rail, which is expected to open to traffic during the year, will pass through Herzl and Yoseftal streets with stations within a short walking distance of all the houses in the neighborhood.
Driving it will allow quick and convenient access to a variety of destinations in Gush Dan, including the urban employment area, Bloomfield Stadium, and entertainment and employment centers in Tel Aviv, Ramat Gan, Bnei Brak and Petah Tikva.
More than 100 TMA 38 projects are being promoted in the neighborhood, a huge number by all accounts, which indicates the tremendous potential and great interest that entrepreneurs see in the neighborhood. About a quarter of the projects are under construction, and the rest are in the planning stages. In addition, about 20 projects have been completed in recent years. In the neighborhood there are several small projects of building evacuation.
Kiryat Sharet neighborhood in Holon (photo: Madeleine)
Kiryat Sharet - Holon
מחיר ממוצע למ"ר: 24,900 שקל
תשואת שכירות שנתית ממוצעת: 3.07%
תשואת הון 2019-2022: 16%
אחוז תוספת דירות בשכונה: 9%
יחס מודעות לדירות בשכונה: 4%
קריית שרת נמצאת בדרום-מזרח חולון, והיא השכונה הגדולה ביותר בעיר. היא הוקמה ברובה בשנות ה-70' של המאה הקודמת, ומאופיינת בבנייני רכבת ישנים לצד בניינים בגובה של עד כ-5 קומות. במרכז השכונה יש מרכז מסחרי ישן ולא מטופח במיוחד, ויש בה גם מוסדות תרבות וספורט, בהם היכל ספורט ומרכז שטיינברג שבו אולם תיאטרון וספרייה. אוכלוסיית השכונה חילונית בעיקרה, וכוללת תושבים ותיקים לצד משפחות צעירות שעברו אליה בשנים האחרונות.
מהשכונה ניתן להגיע ברגל למספר מוקדי קניות ובילוי כמו מרכז עזריאלי חולון, פארק פרס, ימית 2000, מתחם לה פארק וקניון חולון. תחבורתית היא מקושרת היטב, עם מסוף אוטובוסים סמוך וגישה נוחה לכבישים בין-עירוניים, אבל היא גם סובלת ממצוקת חנייה ומעומסי תנועה. בעתיד צפוי לעבור בשכונה הקו הירוק של הרכבת הקלה, שיחבר אותה לתל אביב והרצליה, ובעתיד הרחוק יותר - גם קו מטרו לבת ים, בקעת אונו, פתח תקווה, וצפון תל אביב.
About 40 projects of TAMA 38 are being promoted in the neighborhood, and several projects are planned in its vicinity that will change the area: the old industrial area north of the neighborhood - the Rabbi Akiva complex, is expected to become a residential neighborhood with about 1,100 apartments in buildings up to about 25 stories high, with public gardens and commerce along Jerusalem Boulevard. The first project in the north of the complex is expected to be implemented in 2025, and the renewal of the entire industrial area is expected to take about 15 years; to the east of the neighborhood, the trend of renewing the main urban industrial area and turning it into a high-tech complex is expected to continue, especially with the progress of the construction of the light rail; to the south A huge neighborhood is planned for the neighborhood on the area of the dunes in the south of the city, and the neighborhood itself is expected to see renewal and intensification of construction in the future near the planned metro stations to the north.
Of money
Tags
real estate
investment
Holon
Bat Yam
Haifa
Tel Aviv Jaffa