Last Updated: Oct. 02, 2022
TEL AVIV-YAFO - Apartments	COST ($)		YIELD (p.a.)
	TO BUY	MONTHLY RENT
Center
Studio	$667,280	$1,200	2.16%
1-Bedroom	$1,036,414	$2,442	2.83%
2-Bedroom	$1,405,548	$4,244	3.62%
3-Bedroom	$1,845,669	$10,932	7.11%
Tel Aviv-Yafo (all locations)
Studio	$509,536	$1,026	2.42%
1-Bedroom	$969,876	$1,898	2.35%
2-Bedroom	$1,290,357	$2,390	2.22%
3-Bedroom	$1,657,223	$3,233	2.34%
4+Bedroom	$2,063,447	$4,076	2.37%
Tel Aviv-Yafo avg. Rental Yields			3.05%
JERUSALEM - Apartments	COST ($)		YIELD (p.a.)
	TO BUY	MONTHLY RENT
Center - Yafo Street
1-Bedroom	$614,249	$1,352	2.64%
2-Bedroom	$707,274	$1,846	3.13%
3-Bedroom	$1,320,813	$2,812	2.55%
Jerusalem (all locations)
Studio	$328,915	$843	3.08%
1-Bedroom	$524,295	$1,068	2.45%
2-Bedroom	$688,753	$1,286	2.24%
3-Bedroom	$829,314	$1,968	2.85%
4+Bedroom	$1,065,458	$2,502	2.82%
Jerusalem avg. Rental Yields			2.72%
HAIFA - Apartments	COST ($)		YIELD (p.a.)
	TO BUY	MONTHLY RENT
Center - Lower city
Studio	$190,311	$795	5.28%
1-Bedroom	$311,030	$795	3.07%
2-Bedroom	$332,334	$895	3.23%
Haifa (all locations)
Studio	$111,747	$548	5.89%
1-Bedroom	$231,927	$703	3.64%
2-Bedroom	$328,915	$843	3.08%
3-Bedroom	$475,099	$1,153	2.91%
4+Bedroom	$736,544	$1,462	2.38%
Haifa avg. Rental Yields			3.68%
BE´ER SHEVA - Apartments	COST ($)		YIELD (p.a.)
	TO BUY	MONTHLY RENT
Center - Neighborhood C
1-Bedroom	$185,908	$540	3.48%
2-Bedroom	$236,468	$710	3.60%
3-Bedroom	$281,205	$937	4.00%
4+Bedroom	$374,940	$1,264	4.05%
Be´er Sheva (all locations)
Studio	$163,052	$506	3.72%
1-Bedroom	$171,485	$562	3.93%
2-Bedroom	$224,899	$703	3.75%
3-Bedroom	$299,397	$928	3.72%
4+Bedroom	$446,986	$1,251	3.36%
Be´er Sheva avg. Rental Yields			3.74%
RA´ANANA - Apartments	COST ($)		YIELD (p.a.)
	TO BUY	MONTHLY RENT
Ra´anana (all locations)
2-Bedroom	$756,222	$1,588	2.52%
3-Bedroom	$924,194	$2,080	2.70%
4+Bedroom	$1,012,045	$2,460	2.92%
Ra´anana avg. Rental Yields			2.71%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Get updated rental yields data for 75 countries

Gross rental yields i.e., the rental return on a property if fully rented out, before all expenses, are poor in Israel - almost at Monaco-like levels. Gross rental yields for apartments are near or under 3% (though some areas have higher yields).

This tends to support the popular view that property is somewhat overpriced in Israel.

Tel Aviv is a more expensive city to buy or rent property in generally than Jerusalem. In both cities, prices have risen strikingly. Prices in Tel Aviv for a two-bedroom apartment range from US$1,290,357 to US$1,405,548 whereas in Jerusalem a two-bedroom apartment ranges from US$688,753 to US$707,274.

Renting a two-bedroom apartment in Tel Aviv would cost you anywhere from US$2,390 to US$4,244 per month. Renting in Jerusalem for a similar property is likely to cost you US$1,286 to US$1,846 per month.

Despite Tel Aviv´s higher purchasing price, it generally generates higher yields. The city´s average rental yield is 3.05%. In Jerusalem, it is 2.72%, Haifa´s average rental yield is 3.68%, Be´er Sheva´s average rental earning is 3.74% and Ra´anana has an average rental yield of 2.71%.

Round trip transaction costs are low to moderate on residential property in Israel, with most costs paid by the buyer. See our Israel residential property transaction costs analysis and Round-trip transaction costs in Israel compared to the continent