2024-01-29 16:13:00
Ramat Chen is considered an old and prestigious detached neighborhood in the southern part of Ramat Gan. East of it is the Alof Sde axis. Gaha Road (4), Maccabiah Village and the National Park lie to the south; And to the west – the neighborhood of Ramat T’taisim. To the north it borders on the path of peace. Ramat Chen is also known for its educational institutions, chief among them Belich High School.
In addition to the proximity to transportation routes and the park, the attractive location attracts an established population. The average price per square meter in Ramat Gan is NIS 36-35 thousand per square meter. Since the war, the neighborhood has been completely paralyzed in terms of transactions. Only one transaction was made in the heart of the neighborhood – a 64 square meter apartment, with three rooms on the second floor, was sold for NIS 2.3 million. The owner of the property purchased the apartment in November 2006 for NIS 908 thousand – and recorded a return of 153% in 17 years. In the last decade, prices The apartments in the neighborhood have doubled, after a slow increase in the previous years, which means that this is a real return considering the numbers.
The above deal was done in a relatively old building, more than 50 years old, at a price of about NIS 36,000 per square meter. This is an average price for the city and not for the neighborhood, but considering it was during the war and the fact that it is a very old building, it is understandable. The price differences between old and new are very large.
On San Martin Street, which is right at the southern end of the neighborhood, two transactions were made at the end of December: NIS 3.28 million were paid for a three-room apartment on the seventh floor, and another NIS 5.1 million were paid for a four-room apartment on the ninth floor. The price per square meter in both transactions ranges from NIS 41 to 44 thousand per square meter. That is, not only did the price not go down during the war – it even went up. This can only happen in one place – an area where demand exceeds supply. Sales of new apartments made in Ramat Chen in the past year show that the average price is around NIS 40-38 thousand per square meter – below the average on the nearby Shalom Road in Tel Aviv (NIS 43-42 thousand per square meter).
The prices of land attached to the neighborhood are very high. The last seven transactions for houses with six rooms in the neighborhood ranged around an average price of NIS 8.5 million. One of them was done last March, at a price of NIS 8.7 million, for a house with an area of about a quarter of a dunam. The last two deals were done at an average price of about NIS 40,000 per square meter.
As we always emphasize in land-related transactions – you cannot rely on the data of the tax authority. They are reported as if it were a deal for a regular apartment on the first floor. The price per square meter in these transactions is affected by the lawyers’ reports, which sometimes report on built-up area (land) and not built-up area (the house itself) – and this significantly lowers the price per square meter.
In 2022, two eight-digit deals were made – NIS 10.4 and 11.5 million. These are houses on an area of a quarter to a third of a dunam. The average price for a relatively new villa, built in the last two years, is supposed to be NIS 44-43 thousand per square meter. To understand the value of the land in the area, we took a deal made in early 2022, on Alof David Street. It is a small villa with an area of 59 square meters. The price: almost NIS 5 million. Because these are very old and very small apartments, this is an example of a phenomenon: you pay for such a house a little less than the price of the land, because of the demolition costs that the new landowners are going to carry out. For example, if the price of the land is NIS 5 million and the demolition costs NIS 200,000, they will pay NIS 4.8 million for it.
We checked the rent prices in the area: the prices in the land attached to the land range from 13 to 15 thousand shekels per month, compared to four-room apartments where the rent prices range around 8,000-7,000 shekels. The rent is high, but the price of the house is high enough, so the yield is only around 2.5% – there are better alternatives on the market.
Comments to the article (4):
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The best neighborhood in Gush Dan and perhaps in Israel
Yair 01/29/2024 21:34
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is within touching distance of everything, adjacent to the national park and on the light rail route in Alof Sde… the prices are only going up in the neighborhood
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Expensive
Israel Israeli 01/29/2024 18:34
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No money for rent – no money for a cottage!!! A country in a huge economic crisis with high interest rates and real estate prices in the sky………….. even in China they thought that the world was resilient regarding apartment prices!!!
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know where before
one! And one! 29/01/2024 18:31
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I no longer take the funny Itzik’s articles seriously. It’s nice to see to what level the content of the articles reaches. The stronger the pompoms are, the more I understand how much stronger the pressure from those with interests is. Smart, his eyes in his head! My opinion only! The people of Israel are not friar!
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Pacifiers and more
Broker 01/29/2024 20:22
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Israelis don’t just suck in the sand in front of people living outside the country. Here all Israelis are suckers, fact. Just look at real estate prices. Author prices on basic products. and for dessert the elected officials. Some of whom break faith, are slaughtered and are elected again and again. Suckers is a gentle word.
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#Ramat #Chen #neighborhood #war #affect #rental #prices #realistic