Another sign of the strength of the real estate market in Israel for ownership and investment is that rental prices countrywide spiked in July from Beersheva to Tel Aviv to Jerusalem. According to Ynet news prices climbed an average of 4% in July alone.
The fours years of recession from 2000-2004 brought a reduction in rental prices and a significant halt in new building. The recession was security based, not due to the banking/mortgage industry. Now pent-up demand for housing, especially rentals as families wait for their new apartments to be built from paper to completion, which can now take two years.
Our personal situation also caused us to look for a rental apartment and we found that rental prices in most communities in the last two years have risen since 2007 ; 35-50% depending on location. The devaluation of the $ to the Shekel has now caused the average rental price/contract to be quoted in shekels only.
In Jerusalem, the coastal communities of the Sharon and Tel Aviv the average 3 bedroom rental is now ranging from 4500-6500 NIS; aproximately $1250-$1600 per month.