Compared to the American Stock Market, Israeli real estate did not do well in the last ten years. According to a survey by the Association of Real Estate Assessors, real estate in Yerushalayim rose only 44% during the last decade to a current cost of an average of $280,000 for a four-room apartment (two bedrooms). In real terms this represents a rise of only 7.5%. These figures do not factor in the cost of saved rent or the (tax-free) earnings from rental, and they certainly do not attempt to evaluate the quality of life in the various places.
A four-room apartment in Tel Aviv rose from $192,000 in 1990 to $350,000 in 1999 -- a nominal increase of 82 percent. However when the rise in costs is factored in the gain was only 35%.
There were also relatively high price increases in Ramat Hasharon (80 percent in nominal terms, to $280,000), Rishon Letzion (68 percent, to $185,000) and Kfar Sava (66 percent, to $225,000).
Netanya registered a low rise (from $125,000 to $180,000), and both cities came in just above the bottom of the list that is occupied by Carmiel and Petach Tikvah. Apartments in these two cities registered nominal price increases of only 43 percent over the decade, to $115,000 and $195,000, respectively.
