The newspaper "Globes" revealed last October which are the only neighborhoods in Israel where the yield from renting an apartment crosses the 5% threshold per year.
The article was based on data provided to the reporter from the Madeleine website.
It is not new that apartments in the periphery yield a higher yield than the average yield in Israel, which exceeds 3%.
Beyond the neighborhood in the city of Nesher, which is adjacent to one of the largest employment areas in the country, and recorded a return of 5.06% per year, the big surprise was recorded from the direction of Beit She'an and Dimona.
In Beit She'an, a yield of 5.22% was recorded - high by all accounts, and in Dimona a dreamy yield of 6%.
To explain the viability of the investment in Dimona it is not enough to look at the yield, but also at the prospects for renting the apartment in an area that is considered, at least in the past, as unemployment-stricken, devoid of education and leisure infrastructure and almost inaccessible to the center.
Photo: Nadav Pekt
Something has changed in Dimona
In recent years something has changed in the city.
New construction, high transportation accessibility thanks to the connection to the Israel Railways (an hour and a half from Tel Aviv Central) and easy access to Highway 6, excellent education, with the city winning the education award for 3 years, and apartments priced up to NIS 1 million, compared to more than NIS 1.6 million in Be'er Sheva. Just a 20-minute drive away.
In terms of infrastructure, a new country club has been built in the city in recent years, a park with an artificial lake and an amphitheater that hosts popular shows.
Even the employment opportunities have expanded significantly, with the relocation of IDF bases from the center to the Negev.
Photo: Nadav Pekt
Beautiful and sought after neighborhood
In the next decade, the population is expected to grow from 40,000 residents to 70,000, and the city enjoys demand mainly from young couples in the Negev.
One of the most sought after and beautiful neighborhoods is the new Shahar neighborhood, whose hallmark is an artificial stream that flows along it.
Around the creek construction in a modern concept, subsidized schools and kindergartens up to age 4, a commercial center and parks.
The neighborhood covers about 1,200 dunams and is expected to include about 3,200 housing units in a diverse mix that includes ground floor, saturated construction, garden apartments, cottages and penthouses.
The neighborhood currently has about 4,000 residents, and upon completion of the works, about 12,000 residents will live there.
The new neighborhood is connected to the fiber-optic network and throughout it wireless internet, which allows free surfing in the streets and parks.
Average apartment prices are around NIS 1 million.
16% tax benefits and a short walking distance from the mall and the city center are very appealing to a young population.
Photo: Nadav Pekt
There are no empty apartments
One of the most active and oldest entrepreneurs in the Hashahar neighborhood is Asia Cyrus, which has been operating in Dimona for 5 years and has already sold hundreds of housing units in the city.
The company, which has hundreds of other projects in Gan Yavne, Gedera and Mazkeret Batya, markets most of the apartments in Dimona as part of a price-per-tenant program.
Beyond the eligible, lottery winners in the neighborhood, the company also enjoys the demand of many investors, who, like the young people, have recognized the potential of the Dawn neighborhood.
Evidence of Asia Cyrus' belief in the neighborhood is a promise in the contract to investors that if they do not find a tenant, the company will pay them rent for a year.
"Mayor Bnei Bitton has said many times that there is not one empty apartment in Dimona, and that is true," said Asia Cyrus CEO Doron Atiyah this week. Even before the apartment was ready.
"Those who come from the center do not know the demand in the city and in the neighborhood, and are a little apprehensive, and because of that we initiated the operation."
Atiyah explains why Asia Cyrus has been operating in the city for so many years: "We were among the first to recognize the potential, and we seem to have made no mistake. We strongly believe in the city also due to the tremendous development it has undergone in recent years, but first and foremost "
"The Shahar neighborhood is already today, and certainly at the end of construction, the most beautiful and inviting neighborhood in Israel. Every time we come for a tour of our projects, we are excited about the beauty and progress of construction. We intend to operate for many more years in Dimona, because we strongly believe in it and its future."
Attractive for residence and investment
Real estate expert, former chairman of the Bureau of Real Estate Appraisers, appraiser Ohad Danos: "There is no doubt that Dimona is today one of the finest residential and investment alternatives in the southern cities. "Dimona is the place for it. The city is halfway between Be'er Sheva and the Dead Sea - a 20-minute drive in each direction, and ensures, both due to the anchor that the nuclear reactor produces, and due to its proximity to Be'er Sheva, stable sources of livelihood for its residents."
Danos notes that Dimona is also very attractive to investors: "5% -6% annual return on average residential apartments, it's just an unfulfilled dream for the center's investors, who settle for about 3.5% on average."
Dimona currently boasts the new Shahar neighborhood, which is being established in the east of the city, and there is no doubt that the addition of more than 3,000 new housing units in saturated and ground-level construction, along with gardens, public buildings and modern infrastructure, will bounce it another step and contribute to branding as the leading city in the Negev.
