Rents on the rise but still lower than last summer

Apartment in Israel for rent credit: Shlomi Yosef
Apartment in Israel for rent credit: Shlomi Yosef

After a 0.7% increase in rents nationally in June, there was a 0.4% increase in rents in July but according to WeCheck rents are 3% lower than in July 2023.

Residential rents in Israel have been on the rise this summer but have yet to return to the levels of last summer. On the other hand, the number of apartments for rent in July was 30% lower than July 2023, with the smaller supply pushing up rents, even in the midst of the war, according to a survey by WeCheck, a fintech company serving landlords and tenants.

WeCheck, which follows the market closely, found that in July, the rent rises that typify the summer are continuing. After a 0.7% increase in rents nationally in June, there was a 0.4% fall in rents in July, but according to the company's findings, the average rents charged to tenants last month was 3% lower than those of July 2023.

The average rent in Tel Aviv for 1-5 room apartments reached NIS 6,727 per month, compared with NIS 7,171 in July 2023, down about 6%. WeCheck CEO Rami Ronen says the city has not yet fully recovered from the declines that hit last year, although rents are back on the rise.

In Herzliya, the average rent is the second highest in the list of cities checked by the company, with an average rent of NIS 6,537, down 1.4% compared from July 2023, while in Jerusalem the rent was the third highest and reached NIS 5,200 per month, up 2% compared to last year.

Sharp fall in supply

Ronen observes that rents are now being affected by a sharp drop in the supply of apartments compared with last year. He says, "We are seeing a sharp fall in the supply of apartments for rent compared with July of last year, at a rate of 29.5%, which is probably due to the small number of new apartments added to the market, a tendency to renew existing contracts and the exit of apartments from the market due to high interest rates compared with the low rental yield. The continuation of this trend may lead to further increases in rents in the coming months."

There may be a situation where the war contributes to further reducing the supply of apartments. The summer, when the academic year ends, marks the end of the rental year, with some contracts renewed and other tenants moving.

Due to the war, with many renters and apartment owners mobilized for months-long reserve duty, and fear of missile attacks from Iran, Yemen and Lebanon, it seems that many prefer to renew existing contracts, rather than start looking for new apartments and tenants.

This significantly lowers the supply of available apartments, and may increase pressure on new tenants or those who have decided to change apartments despite the situation.

Published by Globes, Israel business news - en.globes.co.il - on August 6, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Apartment in Israel for rent credit: Shlomi Yosef
Apartment in Israel for rent credit: Shlomi Yosef
Arik Faingold credit: Nati Levi Israeli autonomous frontend co AutonomyAI raises $4m

Led by Arik Faingold, the founder of cybersecurity unicorn Pentera, AutonomyAI offers a platform that learns and understands the full organizational context and generates code that can be deployed directly to the production environment.

British Airways aircraft  credit: Shutterstock/Jarek Kilian Tel Aviv - London fares to fall as British Airways resumes flights

From June there will be 20-32 weekly flights operated on the popular Tel Aviv - London route by foreign airlines - British Airways, Wizz Air and easyJet.

Partner Partner forms int'l business diivision

The division will be headed by former Bezeq International VP Global Business Nissan Arieh.

Caesarstone kitchen credit: Caesarstone Caesarstone bucks Nasdaq as tariffs boost potential

The Israeli quartz countertop manufacturer company has fallen on hard times due to Chinese rivalry but tariffs could boost its revenue.

ZIM ship credit: ZIM Trump's tariffs torpedo ZIM's share price

ZIM's share price fell 16.4% on Wall Street on Thursday and a further 7.2% on Friday, closing with a market cap of $1.5 billion, wiping out all its gains in 2025.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Tel Aviv, Holon, Rehovot, Kiryat Tivon, Shlomi and Beersheva.

THAAD anti missile system credit: The US Army Ralph Scott Wikimedia US deploys more THAAD, Patriot batteries in Israel - report

Amid rising regional tensions the US is bolstering Israel's air defense, Saudi state-owned TV channel Al Arabiya reports.

Tel Aviv Stock Exchange credit: Shutterstock TASE tumbles in Wall Street's wake

Dual-listed stocks have again been hard hit, but the banks are also down sharply.

Donald Trump and Benjamin Netanyahu credit: Avi Ohayon Netanyahu due in Washington to discuss tariffs

According to news website Axios, Prime Minister Benjamin Netanyahu will be the first leader to meet President Trump after the latter's announcement of sweeping import tariffs.

Yoni Assia CEO eToro Credit: PR eToro defers IPO amid market turmoil

The online trading platform had planned to begin meetings with investors this week.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef Smotrich meets wrong man in Washington

Minister of Finance Bezalel Smotrich tried to persuade Secretary of the Treasury Scott Bessent to soften the tariff blow on Israel - only Bessent isn't responsible for the matter.

Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018