The upheaval in the rental market continues: prices are falling in the center and rising in the periphery.
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Rental prices swing around the country
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Many young people are returning to their parents' homes, and more and more apartments are being vacated.
People are discovering the periphery in search of spaces, and surprisingly the map of real estate is changing.
Rents in the central area are falling and in the periphery are rising, but the trend is mixed and spotty, as can be seen from the attached table.
In the central cities and in the demand areas, the decline in rental prices continued during the month of August.
On the other hand, there has been an increase in rents in peripheral cities.
This is according to data from the Yad2 website.
It should be noted, however, that this is a moderate decline and that the trend is not significant in all areas.
In some peripheral cities, there have been declines in rental prices and there have also been increases in some of the central cities.
These are average rental prices of 4-room apartments in 45 selected cities, which were examined in August 2020 compared to August 2019.
In Tel Aviv, rental prices fell by 4% in August and averaged NIS 7,934.
In Bnei Brak, prices fell by 5% to NIS 4,760.
In Hod Hasharon, prices fell by 4% to NIS 5,037.
In Givatayim, a decrease is similar to NIS 6,316.
In Holon, there was a 3% drop in prices to NIS 4,977, and in Kfar Saba a 3% drop to NIS 4,976.
Petah Tikva dropped to NIS 4,594 and Yehud Monosson to NIS 4,815.
In Rishon Lezion, there was a moderate decrease of 1% to NIS 5,171.
Leading the decline in rental prices is Sderot, which recorded a 12% decline in August to NIS 2,779.
It is followed by Kiryat Bialik with a decrease of 9% to NIS 3,206.
Tiberias, Nahariya and Kiryat Motzkin recorded a 7% decrease in rent, and a 6% decrease in Nesher.
Corona crisis
The decline in prices in the center of the country can be attributed to the corona crisis that is leading many young people to leave apartments in areas of demand where rents are relatively high, and look for apartments with lower rents that are most often found in peripheral cities.
The eruption of the corona has had severe economic consequences in many segments of the population, and tenants among them.
Many have not yet returned from the IDF, many have been laid off yet to find a new job, small businesses whose economic activity has been severely damaged due to the crisis and the like.
These days, another full closure has been imposed on Israel, which has already caused hundreds of thousands of workers to leave the IDF or lose their jobs altogether, and the effects will be felt in the coming months.
There are also increases
In other central cities such as Ramat Gan, Ramat Hasharon, Raanana and Givat Shmuel, rental prices have hardly changed in August compared to last year.
In Ramat Gan the average rent remains NIS 6,009 per month, in Ramat Hasharon NIS 6,183 and in Raanana NIS 5,441.
On the other hand, Eilat led the price increases in rent in August with an increase of 7% to NIS 4,091 on average.
It is followed by Jerusalem with a 5% increase to NIS 5,847.
Kiryat Gat rose by 4% to NIS 3,161.
They are followed by Lod, Ness Ziona and Modi'in with increases of 3%.
Herzliya rose by 2% to NIS 6,228.
Rosh HaAyin also rose by 2% to NIS 4,320, and plowing to NIS 2,562 on average.
Rises in rental prices were recorded at 1% in the cities of Kiryat Yam, Hadera and Bat Yam.
According to Yavin Gil Moore, CEO of Yad2: "Economic uncertainty still characterizes many sectors of the population, and tenants among them.
After the second wave, the demand data on the site broke an all-time record due to seasonality and an eruption of demand from March and April.
It is likely that as the economy returns to normal, there will be a recovery and a gradual increase in demand. "
Produced by the Department of Special Supplements