In contrast to home prices, which show signs of decline, rental prices in many cities in Israel increased significantly in the second quarter of 2023 compared to the same period of 2022, according to data from the Yad2 website.
The comprehensive examination examined the average rental prices of three-, four- and five-room apartments in all the most popular cities on the site (according to the number of apartment rental ads in them. Among other things, it was found that the rental market for three-room apartments saw price increases in Herzliya – NIS 5892 per month in the second quarter of 2023 (an increase of six percent compared to the corresponding quarter last year); in Petah Tikva - NIS 4387 (an increase of five percent); In Bat Yam - 4712 NIS, In Tel Aviv - 6114 NIS, in Kfar Saba - 4698 NIS, and in Or Yehuda - 4224 NIS per month (4% each).
In contrast, rents for three-room apartments declined in Rehovot (four percent), Kiryat Bialik and Hadera (3 percent each), Ramat Gan (2 percent), Givatayim and Ashkelon (an increase of one percent each).
Jumps of 13%-6%
In four-room apartments, rent in Kiryat Motzkin increased, with an increase of seven percent to NIS 4680 per month; in Netanya - NIS 6262 (an increase of five percent); in Holon - 6007 NIS (4%); in Rehovot - 5716 NIS (3%), in Tel Aviv - 7881 NIS and in Petah Tikva - 5923 NIS; in Haifa - 4857 (2%); Finally, in Givatayim and Ashdod there was an increase of one percent, to NIS 7905 and NIS 5311, respectively.
There was a decline in the rental prices of these apartments in Eilat (seven percent), Or Yehuda (five percent), Herzliya (4 percent), Ramat Gan (3 percent), and Kfar Saba and Batem Yam (two percent each).
In five-room apartments, rental prices increased in Givatayim – a 13 per cent jump in the second quarter of this year compared with the corresponding quarter, to NIS 10,184 per month; In Kiryat Motzkin, rent rose to NIS 5466 (eight percent); in Kiryat Bialik and Kfar Saba to NIS 5268 and NIS 7960, respectively (7%); In Haifa and Or Yehuda, prices rose to NIS 6057 and NIS 7044, respectively (6%); And in Tel Aviv and Petah Tikva there was an increase of five percent each, to NIS 10,108 and NIS 7484,<> per month, respectively.
In contrast, rental prices for five-room apartments declined in Rishon LeZion (8%), Ramat Gan (5%), Kiryat Ono (4%), Netanya (3%), and Herzliya (1%).
The Central Bureau of Statistics also reported this week an annual increase of ten percent in rents for new tenants. At the same time, the landlords were informed that the exemption ceiling for those who own one apartment will increase to NIS 7,500. For those who own more than one apartment, the exemption will remain at NIS 5,471.
Rent until the fury passes
Ayelet Nitzan, Yad2's VP of Marketing, notes that "an examination of rental prices as indicated by ads published with us reveals variation in prices between cities in Israel. In my assessment, this is due to the existing supply of rental apartments in the cities examined, versus demand. In cities where there is a large supply of rental apartments, renters have more bargaining power vis-à-vis landlords and are able to achieve price reductions – for example, in Ramat Gan, where there is a greater supply of apartments and there were declines of 5% in rental prices for five-room apartments, while nearby Givatayim, where supply is smaller, and prices jumped by 13%.
"Alternatively, in cities where rental prices are already high and the cost of living does not allow tenants to pay the asking prices, landlords are forced to be flexible and lower the price in order not to leave the apartments empty, and in order to generate a continuous return from their property. For example, in Rishon LeZion, which recorded a decline of 8%."
Dorit Sadan, CEO of real estate marketing company Neve Ha'ir, explains, "The surge in rental prices in some cities stems from two main reasons: the first is a matter of demand versus supply, but the more significant reason – the sharp increase in interest rates in the economy, which makes it difficult to purchase an apartment and sends many into the rental market. Potential homebuyers are now sitting on the fence waiting for the fury to pass, and are forced to rent apartments, sometimes at a higher price, or settle for smaller apartments in more remote areas. Thus, the demand for rental apartments has increased considerably, and accordingly prices are rising.
"In addition, prices are rising because the landlords who rent them out have also suffered a significant increase in their inputs – mortgages that have become more expensive, for example – and they need to raise prices to balance expenses against income."
Ayelet Nitzan, Yad2 website: "In cities where rental prices are already high and the cost of living does not allow tenants to pay the asking prices, landlords are forced to be flexible in order not to leave the apartments empty, and in order to generate a continuous return from their property"
Survey: Bedouin Population Indifferent to Legal Revolution
Eighty percent of the Bedouin population in the Negev are completely unfamiliar with the details of the legal reform, according to a recent survey conducted by the Ripman Institute for Joint Development in the Negev. Thirteen percent are somewhat familiar with Minister Yariv Levin's plan, and only 13 percent responded that they know the details well.
An even larger percentage – 83 percent – said they were not involved in the reform at all, 13 percent said they opposed it, and only 2 percent supported its advancement.
Nearly 90 percent claimed that they do not intend to influence public opinion on the issue by taking various actions, 8 percent will influence their position only if there is an organization around them, and only 5 percent will take active action to promote their public position.
In conclusion, the respondents were asked whether the reform would improve or worsen the situation of the Bedouin in the Negev. 83 percent answered that it would not affect them at all, assuming that the Israeli public shows less interest in them. Fourteen percent claimed that the reform would worsen their situation, and only 14 percent claimed that the reform would improve their situation.
Hagai Reznik, Director of the Ripman Institute: "The results illustrate that the Bedouin population in the Negev, which numbers over 300,<> people and is comprised entirely of Israeli citizens, feels a lack of belonging to Israeli society as a whole, regardless of political position, even when it comes to the most pressing issues. The lack of prosperity of the Bedouin population constitutes a barrier to the development of the entire Negev."
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