The real estate market all over Israel and especially in Beit Shemesh has changed in the last two years. After many years of consecutive price increases, there is a noticeable relaxation in the market. Prices are not rapidly decreasing however there is a slowdown in the prices increasing.
The main reason is the high interest rate on mortgages. In February 2022, the interest rate was 0.1%. Within a year and a half, we reached an interest rate of 4.75%. This means that mortgage repayments increased by hundreds and thousands of shekels per month, and people started to think twice before entering into heavy and expensive mortgages.
Despite the high interest rate, there is still a high demand relative to the supply. I am currently marketing an upmarket property in the heart of Ramat Beit Shemesh, and I receive many calls from interested buyers. The rental market also remained stable, a 3-room apartment was rented within a few days at a high price compared to the market.
Another sign of the stable demand is the new construction. In the Neve Shamir neighborhood, also known as Ramat Beit Shemesh HEY a number of new projects are being built, with a total of 611 apartments.
A huge neighborhood is currently being built in Ramat Beit Shemesh Daled, which should contain about 1,000 apartments. The new construction takes place mainly in new neighborhoods, such as Neve Shamir and Ramat Beit Shemesh Daled, but not only. In Mishkafayim, about 80 apartments are currently being built in residential buildings. In addition, there will be a bid for land that is intended for the construction of 74 semi-detached houses.
How much will these apartments cost you? In the new areas, 4-room apartments (3 bedrooms) are starting from 2,405,000 NIS. In Mishkafayim a similar apartment will cost 2,700,000 NIS. A 5-room apartment starts at 3,000,000 NIS in both areas.
One of the reasons why demand remains stable is the strengthening of foreign currencies relative to the shekel. This enables foreign buyers who would want to buy in Ramat Beit Shemesh and many local buyers who have income and savings from overseas.
In the last year, the dollar rose by 13% relative to the shekel, and the pound even overtook it with a 17% increase in the same period. This means that you will be saving 100,000 dollars, or 110,000 pounds while purchasing a 5-room apartment.
In the current war, Beit Shemesh has proven itself to be a relatively safe place, and unfortunately, we encountered families from other areas who are looking to move to the city due to this fact.
If you would like to hear about second-hand properties, as well as new projects around the city, please leave your details and we will try to get back to you.