A six-room, 164 square meter house with a 362 square meter yard was sold recently to an Israeli from the center of the country for NIS 5.8 million. The house on Ha'ahava Street is on a 450 square meter lot with a swimming pool and is overlooking the sea. The house, which is part of Amram Avraham Construction's Aqua Resort project has two parking spaces, and will be ready for occupancy in several months.
The buyer is an investor who is selling his house in central Israel in order to finance the purchase. Amram Avraham VP marketing Assaf Hamon says there are two types of buyers for the houses in the Eilat neighborhood, people looking for a higher quality home and investors from the center. "Some of them," he says, "buy the house as a vacation home and not necessarily for long-term rental as happens in large cities in Israel."
According to the company, long-term rentals are less common in Eilat, certainly for properties of this type, and they range between NIS 12,000 and NIS 14,000 per month. Short-term rentals, for vacation purposes, mainly as Airbnb apartments, are more common, and can produce an average of NIS 600,000 per year, assuming that it is rented for about 200 days a year.
The house overlooks the Red Sea and "Mosh's Beach", one of Eilat's most most popular beaches for tourists. The house has direct access to the beach via a path, and it is a short walk from a planned nearby park.
Real estate appraiser Ofir Kot says, "As in other cities, in Eilat, a sea view is worth a lot. Proximity to the sea has a big effect in Eilat. From past deals I have accompanied and analyzed, you can see a price difference of up to 30% between two properties in the same neighborhood - one with a sea view and the other without."
Talking about Eilat's high-end housing market, Kot says, "It is a very lively market, even at the moment. The luxury market in Eilat mainly includes houses and penthouses, both in the new and old neighborhoods, and the majority is of course concentrated in areas close to the sea, and especially in properties that offer the same open sea view. The buyers are mainly investors, who offer the property as an alternative to a hotel, for example to large families looking for a house with six, seven or eight rooms.
"The market is very hot and thriving, especially in the summer, naturally. Two or three years ago the market was at its peak, similar to the boom in the real estate market in Israel as a whole, and since then prices have fallen. It seems that they are now returning to their high level, and if the demand for vacation apartments and Airbnb in the city continues, prices may even rise further. However, it is difficult to accurately estimate at the moment what will happen in the future in Eilat's luxury market."
About 57,000 people currently live in Eilat. According to data from the Madlan website, the average price for a deal in the Red Sea resort is much lower than the price in this deal - at NIS 1.8 million. However, when it comes to plots of land with a large yard and a private pool, the prices are much higher. In the last three years, nine deals have been completed in Eilat for more than NIS 5 million, most of them for houses.
Published by Globes, Israel business news - en.globes.co.il - on March 4, 2025.
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