Israel Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

14.2x

Ratio of property prices to annual income

Rental Yield

3.2%

Average annual rental return

Price to Rent

30.9

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Israel Real Estate trends and investment implications

Market Overview

Israel's property market exhibits characteristics of being overheated with a high price-to-income ratio and moderate rental yields. The market's current dynamics suggest caution due to low rental yields compared to interest rates, but long-term investors might still find opportunities in select segments. The high price-to-rent ratio further complicates the decision for potential buyers, indicating a potential preference for renting in the current climate.

Key Findings

Data-driven insights

•The price-to-income ratio at 14.2 suggests significant affordability challenges, indicating a potentially overheated market.
•Gross rental yield is relatively low at 3.2%, which may not be attractive compared to prevailing interest rates.
•Price-to-rent ratio of 30.9 highlights a potentially uneconomical environment for buyers over renters.
•Historical data shows periods of strong appreciation, but current metrics suggest a possible correction phase.

Market Trends

Historical patterns

•Long-term appreciation has been a consistent trend, particularly during economic booms and periods of geopolitical stability.
•Rental yields have generally remained low, reflecting high property prices relative to rental income over decades.
•The market has experienced cycles of rapid growth followed by stabilization phases, often influenced by macroeconomic factors and regional stability.

For Investors

Actionable takeaways

•Consider waiting for a market correction before making large-scale investments due to the high price-to-income ratio.
•Focus on properties that can offer higher rental yields, possibly in emerging neighborhoods or those with development potential.
•Evaluate the buy-to-rent strategy cautiously due to the unfavorable price-to-rent ratio, which favors renting over buying.
•Monitor interest rate trends closely, as rising rates could further dampen property investment attractiveness.

Market Context

Israel's property market is mature, characterized by high demand driven by limited land supply and population growth. However, the market's current metrics reflect potential overheating, necessitating careful investment strategies.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.