The recent increase in the number of apartments available for rent has caused rent rates to drop considerably and real estate experts say the trend will only grow stronger.
The main reason, said prominent assessor Levi Yitzchak, is the fact that more and more people are buying flats as an investment and as the supply of quality housing available for rent goes up, rent rates go down.
According to the Yitzchak's price-list, considered one of the market's most reliable, rent prices have dropped by 14% in the past three months.
Notable markdowns in housing prices were noted in northern Tel Aviv (-6%) and its south (-10%), Ramat Gan (-6%), Beersheba, Haifa and Petah Tikva (-10%) and Jerusalem (-8%).
The past year has seen hundreds of apartments sold across Israel for investment purposes and Yitzchak estimated that about 50% of all apartments purchased were bought solely for investment purposes.
Many people are willing to compromise on the rent rather than see their flat stay empty, he added.
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