A few reasons to smile: rental prices are starting to drop by up to 3% in some cities, according to second hand data produced at the request of Israel Hayom.
The cities where the most significant decreases were recorded between the months of January this year and December last year in 4-4.5 room apartments were Herzliya and Ramat Gan, with a decrease of 3%.
In Givatayim there was a decrease of about 2%, and in Holon and Modi'in Maccabim Reat of about 1%.
On the other hand, in the cities of Ashkelon, Petah Tikva, Ra'anana, Rishon Lezion, Kfar Saba, Jerusalem and Netanya, the rental prices for 4-4.5 room apartments have remained the same.
In Tel Aviv, Rehovot and Haifa, rental prices increased by 1%, while in Hadera (2%), Bat Yam (3%) and Ashdod (4%) there is already an increase.
And what about the big apartments?
Ayelet Nitzan, Yad2's VP of Marketing, explains: "We are seeing the first buds of a price drop in rentals as well, this can be explained by the fact that the winter months are considered 'weak months' in the rental market.
Fewer people are moving, so demand is also falling.
Another reason is that the rental market recorded an anomalous increase from May last year, and now it is undergoing a downward correction."
examine the space.
The Artist's Gallery project of the Donitz company in Rishon Lezion // Photo: View Point // To examine the space.
examine the space.
The Kiryat Ham'an project of the Donitz company in Rishon Lezion,
Those looking for larger apartments of 5-5.5 rooms will find that the prices in Rishon Lezion and Netanya are 2-3% lower.
The price in Rishon LeZion dropped by 3% and stands at NIS 7,323, compared to NIS 7,526.
The price in Netanya decreased by 2% and stands at NIS 8,192, compared to NIS 8,341.
On the other hand, in Ra'anana, Petah Tikva and Ramat Gan the price increased by 2-6%.
In Ra'anana the price was NIS 8,362, compared to NIS 8,212, an increase of 2%.
In Petah Tikva the price was NIS 7,381, compared to NIS 7,160, an increase of 3%.
In Ramat Gan, the highest increase was found, of 6%, and the price was NIS 9,089, compared to NIS 8,592.
Adv. Anat Biran, an expert in planning and construction and urban renewal, adds: "The data show a slight decrease of 1%-3% in rental prices in some cities between January 2023 and December 2022, but on the other hand, a price increase of 4%-6% was also recorded in other cities, And I believe that this is the real trend.
In my view, there is nothing in the data to indicate a downward trend in rental prices, at best there is a status quo."
Urgent new construction
"What can be said explicitly is that if the construction of new apartments stops, it will mean an increase in rental prices, because in the end people have to live somewhere, and if there is no new construction - there will be a shortage. Due to the jump in apartment prices and the increase in interest rates, the younger generation is almost unable to purchase an apartment New and many are afraid to take out a mortgage. They stay in the rented apartments, and the need for these apartments continues to rise.
New apartments in Rosh Ha'Ein // Photo: Yehoshua Yosef,
"If the state wants to lower rental prices and at the same time produce enough rental apartments, it must push the marketing of land for long-term rental housing projects, because currently there is not enough supply. Also, long-term rental in the private market must be encouraged through appropriate regulation."
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