A 9% increase in rent in Eilat: Now is the best time to buy an apartment for investment in the city

Everyone is talking about a rise in real estate prices, no one is talking about the rise in rental prices that yields a great return for real estate investors

Data from the 2nd hand review published in the press last month (April 19, 2022) show that rental prices in Israel jumped in the first quarter of the year by a maximum of 19% compared to the corresponding quarter in 2021.

The increase in rent for 3-4 room apartments, according to published data, is evident in almost all of the top thirty cities in the country except in a few individual cities.

The city where rental rates for 4 rooms have skyrocketed is Tel Aviv. According to Yad2 review data as published in the press, the rent of 4-room apartments in Tel Aviv jumped by 19% to an average of NIS 9,800 per month in the first quarter of the year compared to the corresponding quarter in 2021.

Other cities that led in the list of increases in rental prices for 4 rooms are Rosh HaAyin, Ramat Hasharon and Afula. Followed by the list, Herzliya, Ramat Gan, Tiberias and Hadera.

The main reason for the significant increase in rental prices lies in the continuing gap between demand and supply in real estate. Due to the difficulty in buying an apartment when real estate prices are steadily rising, many people turn to the alternative of rental housing. Thus, in turn, the demand for rented apartments also increases, thus raising rental prices. Similar to the limited supply of apartments for sale, the supply of apartments for rent is also limited. The wave of immigration to Israel from Ukraine following the war with Russia, creates additional demand for rental apartments and therefore the expectation is that rental prices will continue to rise.

An increase of 9% in rent in Eilat

What’s going on in Eilat?

In Eilat, according to the data, there was an impressive 10% increase in rental prices for 4-room apartments. From NIS 3,951 on average per month, to NIS 4,390. 3-room apartments in Eilat recorded a nice increase in rental prices as well, an increase of 9% to an average price of NIS 3,690 per month.

“During the corona, the demand for an apartment for investment in Eilat increased even more following the halting of flights abroad. People have realized the value of having your own vacation apartment in the country in an attractive location, which you can reach and enjoy whenever you want.

“A special model of renting in Eilat is ‘daily rent’. This is a unique model in Eilat that comes from the fact that it is a tourist and vacation city. Countless people from Israel and around the world come to Eilat to vacation and look for a place to stay for a few days. Real estate investors in Eilat can rent Their apartment in the daily rental model and enjoy higher rental prices. One of the most effective ways to do this is through a real estate agency that specializes in daily renting of apartments in Eilat. He will be able to rent the property from you at a higher price and rent it himself to alternate tenants, or alternatively, provide you with daily rental services at certain periods. This way you can save the option to use the apartment yourself whenever you want.

What is important to know about investing in real estate in Eilat?

Eilat is considered one of the most attractive cities for investment in Israel because the prices of apartments are much cheaper relative to the center – you can now find boutique apartments for sale in the city on paper for only NIS 900,000, and since the city is in intensive development to build new neighborhoods, upgrade transportation infrastructure, establish companies Massive energy and recruitment of employees, the expectation is that the value of the apartment you purchased will jump to about NIS 1.2 million within 3 years from today. This is a profit of about NIS 300,000 on a transaction for less than NIS 1 million. Neighborhoods in Eilat are undergoing a process of renewal and accelerated development, such as the coral neighborhood, which when its development process is completed, is expected to bounce real estate prices significantly.

How can an experienced real estate investment advisor in Eilat increase the level of your return from investing in real estate in the city?

A real estate investment broker and consultant in Eilat who knows the city well and the secrets of the local real estate market can guide you to an ideal investment in a property that will yield you the optimal return from his prior knowledge of neighborhoods planned for upgrading and development.

He can find for you excellent investment properties from his exclusive asset pool and even get you an ideal purchase deal based on his recent familiarity with real estate prices in the city.

A professional real estate agent and consultant knows the developers operating in the city and will be able to recommend you reliable developers when buying a new apartment on paper.

A common mistake of real estate investors is to examine the degree of return based only on the income from renting the property. An equally important return factor and in many cases even more, is the value of the apartment that increases from year to year which will yield the investor maximum return. .

In the city of Eilat, which is currently experiencing an accelerated development boom, the intelligent expectation is that apartment prices will rise more and more in the coming years.