The spike in interest rates over the past year and the worsening cost of living led to the fact that rental prices were on a constant upward trend almost all over the country.
Herzliya, photo: Wikipedia
However, it seems that precisely under the protection of the war there is a trend of falling prices, and in many places, especially in the sought-after central cities, opportunities have been created for those looking to rent property.
After a long period of stagnation, the market is starting to wake up again, and at the same time as the price drops in the rental market, you can see a significant increase in the number of properties offered for rent.
From an analysis conducted by the Madeleine site for the Walla site, it appears that although in some cities such as Ramat Gan and Netanya there is an increase in rental prices, it is also moderate and it is only a matter of a few percent increase in price.
In sought-after cities such as Tel Aviv, Herzliya and Rehovot, prices have dropped by tens of percent in recent months.
Even in cities that were less affected by the situation, such as Jerusalem, Haifa and Hadra, a slight decrease in rental prices was recorded.
The city that leads in the decrease in rental prices is Herzliya, where a drop of about 32% was recorded, after the average price for a three-room apartment is now NIS 7,500.
At the same time, Herzliya increased the amount of ads published on the Madelan website by 12%, so it seems that many possibilities for locating a property for rent have opened up.
In Ramla there was a 15.5% decrease in rental prices with a current average price of NIS 3,500 for a three-room apartment, and a 167% increase in the number of ads for rental properties.
In Tel Aviv, which is considered one of the most expensive cities but also one that is particularly attractive for renters, there was an 11.1% decrease, with an average price of NIS 8,000 and a slight increase of 3% in the amount of relevant ads.
The notable decreases in rent, photo: Courtesy of Real Estate Media
Rehovot, where the average price for a three-room apartment is NIS 4,250, records a 10.5% decrease in rental prices and a 144% increase in the number of ads for apartments for rent in the city.
The top five is rounded out by Ashkelon, which has received about 300 notices since the beginning of the war and has recorded an 8% drop in rental prices (the number of notices published increased by 61%).
In Haifa, an attractive city for both investors and renters, and one that was not affected by the war at all, there was a decrease of nearly 6% in rental prices, and it continues to arouse interest with a 90% increase in ads.
Jerusalem also recorded a 6% decrease in rental prices and a 41% increase in ads for apartments for rent.
In Holon, Petah Tikva and Lod, there was no change in rental prices, but there was a significant increase of hundreds of percent in the number of ads.
In Hadera, where prices have risen slightly, there was a 215% increase in ads, in Lod there was a 205% increase in the amount of ads, and in Netanya there was a 191% increase in ads on the site.
"The price drops in the rental market are also the result of a profound change in tastes that took place in Israel following the events of October 7 and the war that followed," says Tal Kopel, CEO of the Madeleine site, "while people are looking to increase their sense of security, the MMD has turned from just another nice room Having an apartment is a real must.
Therefore, when quite a few older apartments, without MMD, were released to the market, they are currently offered at relatively low prices, and this is of course an opportunity for those who are willing to rely on the shelter in the building or in the neighborhood. If you look at rental prices in new apartments only, you can notice that the prices keep on stability, and even immigrants in certain cities."
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