The average rent for an apartment in Israel was NIS 3,826.50 monthly in the second quarter, just under 1% more than in the first quarter. The rise is 1.5% in comparison with the final quarter of 2017, and 2.44% in comparison with the average for 2017 as a whole.
The steepest rise in average rents in the second quarter in comparison with the first was in the northern region of Israel, from NIS 2,564.7 to NIS 2,614.90 monthly, representing a rise of 1.9%. The northern region also leads in the comparison between the second quarter of 2018 and 2017 as a whole, with a rise of 2.9%. The average monthly rent for an apartment with 4.5-5 rooms in this region in the second quarter was NIS 3,824.60, while for an apartment with 3.5-4 rooms it was NIS 2,932.
In second place was Haifa, where average rents rose by 0.97% between the first and second quarters of this year. There too, rents were 2.9% higher in the second quarter than the average for 2017. The average rent for an apartment with 4.5-5 rooms in Haifa in the second quarter was NIS 4,156, while for an apartment with 3.5-4 rooms it was NIS 3,235.20.
The smallest rise in rents between the first and second quarters of this year was recorded in the southern region: just 0.16%. In comparison with the average for 2017, however, rents in this region were 2.79% higher in the second quarter of 2018.
The figures were released by the Central Bureau of Statistics. The rises are not sharp, but the direction of rents in all regions is the same. This continues the trend seen in the final quarter of 2017. It can therefore fairly be said that we are in a period of upward creep in rents.
A possible explanation for this trend can be found in other figures, published by the chief economist in the Ministry of Finance, showing that investors continue to sell properties, while at the same time fewer apartments are being bought for investment. Although this represents success for the government's policy of reducing the proportion of investors in the real estate market, there are those who warn of negative consequences for the rental segment. Clearly, if there are fewer investment properties to let, rents are likely to rise. There is the counter argument that those who buy these properties from investors are first-time homebuyers who would otherwise be renting, and who thus reduce pressure in the rental market, but not everyone who rents their home is able to find the equity to buy.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2018
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