Home Prices Up Nearly Everywhere in Israel in 2019

A construction site of a new residential neighborhood in Kfar Yona. (Gili Yaari/Flash90)

Prices of homes in Israel were up in 2019 – nowhere more than in Yerushalayim, where prices were up as much as 20%, the Re/Max real estate sales chain said. Also increasing sharply in price were homes in Teveria and Tzfas – but bargains were to be found in Ashkelon, where prices fell slightly.

The data was based on sales and rentals made by the chain, but company officials said that the information was reflective of the entire market, and despite the best efforts of the government, that market is as hot as ever. In Tzfas, prices for four-room apartments were up 13.3%, in Chadera they rose 14.4%, and in Teveria they rose 10.9%. Ra’anana saw price increases of 9.1%, and Kfar Sava increases of 8.9% for the same size apartments. In Zichron Yaakov prices increased 5.9%. In that town, private home prices rose 12.2%.

Yerushalayim was the biggest price-gainer overall. Prices increased 14.3% from the beginning of the year through the end of 2019 by an average of 14.3%. The French Hill neighborhood saw prices increase by 11.8%, Kiryat Yovel had increases of 5.3%, and in Kiryat Menachem the average price of a four-room apartment increased by 20%.

Those seeking something cheaper could try Afula, where prices fell between 6.5% for large penthouses to 1.3% for four-room apartments. Nahariya apartments were 2.9% cheaper by the end of the year, and in Ashkelon prices were down 7.4% overall. The biggest price “loser” was Dimona, where homes fell an average of 8.3% in value.

Re/Max Israel CEO Bernard Raskin told Yediot Acharonot that government programs like Price Resident, which aims to create a secondary, cheaper housing market for young couples, helped distort the housing market. “The public will end up paying more for houses, and for rentals as well. I predict price increases in 2020 in the single digits in most areas, and in double digits in some areas.”