As the Israeli real estate market undergoes an adjustment phase, Arad is holding its own. This city nestled at the gateway to the Negev Desert is attracting more and more buyers and investors thanks to some very encouraging indicators. Here’s an overview of the key figures that confirm Arad’s potential for those looking to invest wisely.
📈 1. A 12% increase in the price per square meter in two years
According to data from the Central Bureau of Statistics, the average price per square meter in Arad increased by 12% between 2022 and 2024. This stable growth, without overheating, reflects growing demand without excessive speculation. The average price currently stands at around 8,200 ₪/m², compared to over 12,000 ₪/m² in Beersheba and 20,000 ₪/m² in Jerusalem.
🏠 2. Rental yields above the national average
Thanks to still-affordable purchase prices and steady rental demand (students, young families, and employees of the industrial zone), gross yields can reach 5 to 6%, well above the estimated national average of 3-4%. This is an excellent ratio for investors seeking positive cash flow.
🚀 3. +35% building permit applications in 2023
Arad is also attracting developers: the number of new constructions planned jumped by 35% in 2023. These modern projects, often with desert views, are strengthening the city’s appeal and meeting growing demand.
👨👩👧👦 4. A growing population
Arad’s population, estimated at around 27,000, grew by +2.3% in 2023. This dynamism is driven by young families, retirees, but also by olim (new immigrants) attracted by the quality of life and affordable prices. A diverse and stable rental clientele.
💼 5. A municipal policy favorable to investment
The municipality of Arad actively encourages the arrival of entrepreneurs, artisans, and teleworkers, with tax breaks and renovation support programs. It is also working in partnership with the government to strengthen the city’s educational, cultural, and medical infrastructure.
Conclusion
Arad is in the process of changing categories. Thanks to still-low prices, a well-established development dynamic, and solid indicators, it represents a unique opportunity for those who want to invest before the general public becomes aware.
Are you looking for a market with potential, returns, and security? Arad could well be your next real estate dream.
