A decrease in rent prices is evident: up to about 15% all over Israel

The effect of the war on the rental market is still evident in the first quarter of 2024: after a long period of increases, rent prices in most cities in Israel recorded decreases in the months of January-March this year compared to the corresponding period last year by an average rate of up to about 15%. A decrease in rent was also recorded compared to the last quarter of 2023, when the surprise attack by Hamas broke out and led to a war of iron swords.
An analysis of the "Yad2" website examined the rental prices of 3-4 apartments based on rental ads that appeared on the website in the first quarter of 2024, in the fourth quarter of 2023 and in the first quarter of 2023. Decreases in rental prices were recorded in 28 of the 37 cities tested, while in the cities There have actually been price increases. The analysis shows the top cities in each category.
The data shows that the nationwide average rental prices for 4-room apartments in the first quarter of 2024 increased by 2% compared to the first quarter in 2023, and decreased by 1.1% compared to the fourth quarter of 2023. The national average for 3-room apartments increased by 2.3% and decreased by 3.4% respectively between the periods.
In the 4-room apartment segment, decreases in rental prices were recorded in 28 of the 37 cities examined in the first quarter of 2024 compared to the first quarter of 2023. Comparing the first quarter of this year to the fourth quarter of last year, decreases in rental prices were recorded in 26 cities. An annual comparison shows that the leading city in the decrease in rental prices is Sderot, where the rent decreased by 14.5% on average to NIS 2,944 per month. In second place is Kiryat Gat with a 10.3% decrease in the amount of rent to the amount of NIS 3,450 per month. In third place in the ranking is the city of Nahariya, where the rent decreased by 8.6% to a monthly amount of NIS 3,971.
Also in the ranking: Kiryat Motzkin with a 3.6% decrease in rent in the first quarter of this year compared to the last quarter of last year, when it stood at NIS 4,038 a month during this period. It was followed by the cities of Kfar Saba, Tel Aviv, Afula and Ashkelon, which showed decreases in the rent of 4-room apartments at a rate of between 2.8% and 2% between the first quarter of this year and the fourth quarter of last year. On the other hand, in 11 cities, increases were recorded in the rental prices of 4-room apartments during the examined period. These are Netivot (11.7%), Kiryat Ata (5%), Bat Yam (4.1%), Or Akiva (3.8%) and Ramla (1.6%).
In the segment of 3-room apartments, decreases in rental prices were recorded in 21 of the 36 cities examined between the first quarter of 2024 and the first quarter of 2023. Between the first quarter of this year and the fourth quarter of last year, decreases in rental prices were recorded in 24 cities.
The city of Harish led the annual decrease of 8.6% to an amount of NIS 2,535 per month. followed by Hod Hasharon with a price drop of 8% to NIS 4,672; Ramat Gan with a decrease of 6.1% to NIS 5,484; and Tel Aviv with a price drop of 4.9% to NIS 6,164 per month. They are followed by the cities of Kiryat Gat, Ashkelon, Bat Yam, Holon and Nahariya with decreases of 4.9%-3.7%. On the other hand, increases in rental prices between the first quarter of this year and the first quarter of last year were recorded in 15 cities, including Netivot (7.5%), Ramat Hasharon (7.4%), Rosh Ha'Ein (6.7%) and Kiryat Bialik (6.3%).
Compared to the last quarter of last year, Kiryat Ono led with a drop in rental prices of 8.5% to NIS 4,910 per month. in second place is Harish with a decrease of 8.2% to NIS 2,535; Hod Hasharon with a decrease of 5.3% to NIS 4,672; Kiryat Motzkin with a decrease of 5.1% to NIS 3,039; and Kiryat Yam with a decrease of 4.6% to NIS 2,844 per month. They are followed by Ramat Gan, Ramla, Kiryat Gat, Ashdod and Or Akiva with decreases of 3.4%-4.3%.
On the other hand, in 11 cities there were increases in the rental prices of 3-room apartments between the first quarter of this year and the fourth quarter of last year, including Ramat Hasharon (6.6%), Netivot (5.1%), Rosh Ha'Ein (4%), Petah Tikva (2.3%) and Herzliya (2.1%).