Jerusalem is a city with abundant sources of income, a tourist city with a unique character and a demographic diversity that is almost impossible to find in any other multicultural city in the world. These reasons are part of what makes Jerusalem an especially hot real estate scene, and the numbers speak for themselves.
One of the important indicators that can indicate the profitability of a real estate transaction is the yield index - the income rate from the property. Indeed, in 2018 in the Jerusalem district, the yield rate on small apartments increased by 9% and the yield percentage on three- to four-room apartments increased by 10% . According to Madlan data, the rental yield index in the city stands at 2.75% compared to 2.49% in Tel Aviv. The Ramat Beit Kerem neighborhood recorded a yield of 12% in 2018. One of the highest yields recorded this year in the country for four-room apartments.
A growing city
There are many reasons why investing in real estate in Jerusalem is a worthwhile investment, but there is one reason that makes investing in real estate in the capital particularly worthwhile - Jerusalem, which already has about 900,000 residents, constituting about 10% of all residents of the country, is a growing city.
In other words, it is a city where the population is increasing and in fact the population growth is significantly higher in comparison to other cities. Therefore, it constitutes a fertile ground for future demand. But not only will the demand for apartments increase, but prices are also expected to rise in the future due to a significant shortage of available land in the city. In other words, anyone who purchases real estate now can expect the property to improve thanks to the increasing demand alongside the limited supply.
A diverse population expands real estate options
The heterogeneous population in Jerusalem also increases the demand for apartments. When we choose real estate, we look for the living environment that suits us. The chances of finding it in Jerusalem are especially high thanks to the heterogeneous population that lives in the city - young families, students, a well-off population, religious and secular, where everyone can find their place.
Jerusalem has prominent institutions and organizations that provide many of its residents with a quality source of income. Academic institutions, including the Hebrew University, Bezalel and Sam Spiegel, the Hadassah Mount Scopus and Ein Kerem medical centers, and government ministries, the Knesset and the Supreme Court – all of these attract a learned and educated population to the city that seeks to settle in the city, increasing demand for real estate.
In recent years, the city's residents have also enjoyed an extraordinary transportation boom. First, thanks to the light rail, which allows residents faster and more pleasant movement within the city, and thus also leads to better real estate options near the new transportation routes. But the expected entry of the high-speed line between Jerusalem and Tel Aviv will also allow better accessibility to the business center of Israel, and will attract additional residents to the city, which will increase the demand for apartments in the capital.
A good investment thanks to tourism
But it is not only the city's residents who enjoy all the abundance it offers, as Jerusalem arouses curiosity and pilgrimages from all over the world due to its importance and sanctity to the three religions - Judaism, Christianity and Islam. Over 2 million tourists filled the city's hotels in 2018 and it was crowned by the market research company 'Euromonitor' as the world's leading city in tourism growth.
Tourists who visit the holy sites, entertainment areas, restaurants, and commercial complexes further increase the value of real estate in the city. Jerusalem is also a magnet for wealthy religious figures from all over the world who seek to buy luxury apartments for short or long periods.
It doesn't matter if you are looking for an investment apartment or a residential apartment , if you are a young couple looking for their first apartment or experienced investors looking for the bottom line - at the end of the day, purchasing real estate in Jerusalem turns out to be an especially profitable deal.
