The impact of the security situation on the rental market: After a series of price increases in the rental market for a long time, especially in Gush Dan and Tel Aviv in particular, an iron sword war shuffled the cards and reversed the trend.
The exclusive analysis of the Yad2 website shows that last month there was a decline in rental prices of apartments without a safe room, alongside an increase in the rate of demand for apartments with a safe room out of total demand.
The analysis of the site's data was based on rental ads for 4-room apartments in the cities of the center, the Sharon and the Shfela in October compared to September. Bid2 notes that price behavior is not entirely significant in all the cities examined, and while in some cases the decline in the apartment segment without a safe room is sharper, in other cities apartments with a safe room actually recorded a sharper decline in rents, and in some cities there was even an increase in rental prices.
Security forces in Sderot during an iron sword war, photo: AP
However, the trend is clear: an increase in the rate of demand for apartments with a safe room in all the cities examined out of the total demand for rental apartments that were on the Yad2 site, with the maximum gap being 12.5%. In other words, the number of those interested in renting an apartment with a safe room is 12.5% higher than apartments without a safe room.
Second Streets
The largest gap in rental price declines between apartments without a safe room and apartments with a safe room was recorded in the city of Modi'in, where rents for apartments without a safe room in the city dropped by 6.7 percent, from NIS 6,534 in September to NIS 6,095 in October. This is in contrast to a much more moderate decline in the rent of apartments with a safe room in the city at a rate of 0.5%.
Modi'in is followed by Rehovot, where rents for apartments without a safe room declined by 5.7%, while rents for apartments without a safe room increased by 1.1% to NIS 5,929 per month.
In third place is the city of Herzliya: rental prices for apartments in the city without a safe room declined by 4.4% to NIS 6,981, while rental prices for apartments with a safe room declined by only 2.1% to NIS 8,563.
In Ra'anana, rental prices for apartments without a safe room declined by 4.3 percent, to NIS 6,554, while rents for apartments without a safe room declined by only 1.7 percent, to NIS 7,592.
In the cities of Ness Ziona, Rosh HaAyin and Yehud Monosson, rental prices for apartments with a safe room increased between September and October, while rents for apartments without a safe room actually declined.
Rehovot (archive), photo: Yehoshua Yosef
In Tel Aviv, which is known for particularly high rental prices due to high demand, rental prices also declined by an average of 3.2 per cent, from NIS 8,814 in September to NIS 8,530 in October.
In this case, the rent of apartments with a safe room declined more than the rent of apartments without a safe room. Apartments without a safe room were rented for NIS 7,934 in October, a decrease of 2.7 percent from September, while apartments with a safe room in the city were rented for NIS 9,182 – a decline of 3.6 percent compared with September.
It's too early to mark a trend
In Hod Hasharon, rental prices declined by 2.9 percent, from NIS 7,046 in September to NIS 6,842 in October. In apartments with a safe room, the decline was 3.1 percent, to NIS 7,247, and in apartments without a safe room, to 1.3 percent, to NIS 6,288.
According to Ayelet Nitzan, VP Marketing of Yad2, "An examination of rental prices on the Yad2 website between September and October reveals a decline in rental prices in 11 of the 13 cities examined, led by Herzliya and Tel Aviv. After a month of war, we can see an increase in demand for apartments with a safe room offered for rent on the site when comparing the periods, and it can be assumed that the main reason is Hamas's rocket fire on Israeli communities and the residents' need for protection.
"As for prices, it is still too early to mark a clear trend in rents between apartments with a safe room and those without, but it can be assumed that with the increase in demand for apartments with a safe room, the first signs of which can already be seen, there may also be an increase in the rental prices of these apartments in the coming months."
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