Against the background of real estate prices rising by 16% in the past year, rental housing prices have skyrocketed by a disproportionate rate of about 30%.
The data from the Central Bureau of Statistics still do not reflect the real data of rental prices in the economy, as they are obtained more than two months late, and also due to the fact that the rise in housing prices is ahead of the trends in the rental market.
According to Guy Beit Or, Psagot's chief economist: "The data show that price trends in the real estate sale market tend to be ahead of the housing trends in the consumer price index (rent and owned housing services) by about a year and a half.
In our estimation, the sharp price increases in the housing market in Israel, which have risen by more than 16% in the past year, are expected to continue to seep into the rental market over the coming year.
Further increase in demand
"In addition, following the war in Ukraine, Israel is experiencing a significant wave of immigration in 2022 which is not yet clear whether it has reached its peak. The increased immigration to Israel is expected to lead to a further increase in demand for rents in Israel. In the near future, rental prices in Israel will continue to climb. "
According to Yad2 data, the prices of three-room apartments for rent rose in the major cities in the country by 11.7% -32.6% last April compared to April 2021.
Thus, in the city of Herzliya, this is the highest jump rate with an increase of 32.6% in rental costs.
This is an increase from NIS 5,253 to NIS 6,966.
In Netivot, too, there is a significant increase of 27.7% from NIS 2,072 to NIS 2,646
In Tel Aviv, this is an increase of 18.7% from NIS 6,574 to NIS 7,803 and in Kfar Basaba by 15.3% from NIS 4,046 to NIS 4,667.
In four-room apartments, this is an increase of 10.1% -25% last April compared to April last year.
Rise in rental prices by region,
Ayelet Nitzan, VP of Marketing for the Yad2 website, explains: "The main reason for the price increase is the gap between supply and demand.
"Demand levels for rental apartments are constantly rising in light of the public's difficulty in purchasing an apartment at today's market prices, and given that supply has not increased accordingly, among other things in light of restrictions on real estate investors renting the apartments. The immediate result is rising prices."
"Double increase"
Shachar Tal, a real estate appraiser, added: "When there is a celebration in the market and when everyone sees that apartment prices have risen, everyone wants rents to rise so that the yield is appropriate. That's always the case. People are looking two years ahead. "
From NIS 4,700 to NIS 6,000
Raz Hadad, a 29-year-old personal fitness trainer from Tel Aviv, says: "I live in a 43-square-meter apartment located outside the city center, on a street with garages.
I am due to end my contract in August and I called the landlord to ask if there is an expectation of an increase in rent - and of how many.
An increase of NIS 1,300 per month. Haddad,
"I was sure that a four percent increase would be expected, which is NIS 400-300. In practice, he told me that the rental price would increase from NIS 4,700 to NIS 6,000. I wrote to him that this was a delusion, that I did not believe it was happening. delusion".
He added that "lately in every purchase at the supermarket you are slaughtered. In every most basic purchase you come out with a bill of a few hundred shekels, and this accompanies every lifestyle in the country, which spends thousands of shekels a month and barely closes the month.
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