Sharp rise in rent prices in Tel Aviv
Prices to increase ahead of August, real estate agent says
Rent prices for two and three-room apartments in the rest of the country are mixed.
As the apartment shortage in the Tel Aviv area continues, the high demands lead to a sharp rise in prices. The drop in the US dollar's exchange rate has also contributed to a rise in the prices set by flat owners.
According to the data, the average monthly price for a two-room apartment in south Tel Aviv was up 10 percent in May, totaling $580. A rise was also noted in the prices of three-room apartments in the city's southern neighborhoods, with average rent prices of $650 a month, which reflect a price rise of 5 percent.
Sharper price increases were noted in central Tel Aviv, with the average price for a $750 for a two-room apartment (a 15-percent rise) and an average price of $1,100 for a three-room apartment (an 11-percent rise).
In the north of the city, the average price of a two-room apartment amounted to $830 (a rise of 6 percent), while the average price of a three-room apartment totaled $1,160 (a rise of 5 percent).
Mixed prices in Jerusalem and Haifa
In Jerusalem, where prices were stable in April, the average price of a two-room apartment rose 12 percent, totaling $700 a month. The price of a three-room apartment remained unchanged at $750.
In the southern city of Be'er Sheva, the average price of two-room apartments remained $250, while the average price of a three-room apartment dropped by 11 percent to $355.
In Haifa, the average price of a two-room apartment rose 12 percent to $330, while the average price of a three-room apartment dropped 6 percent to $435.
"The rental market is a summer market," says Hanan Schlesinger, CEO of the Anglo-Saxon real estate agency. "It has a clear and significant seasonal component, and therefore we will continue to witness a price increase ahead of the summer in most parts of the country."
"Haifa, Jerusalem and Be'er Sheva are cities where the rental market is based mostly on students and campus workers, and therefore we have yet to see significant rises in those areas, but ahead of August and September they are also expected to see rises in rent prices," he adds.
"The rises are expected to be particularly prominent in Jerusalem," Schlesinger estimates. "In light of the calm security situation and the stable economic situation, and in spite of the crisis in Israeli politics. We must not forget that Jerusalem is again attracting foreign residents who are purchasing apartments and contributing to the price increase."
