Get all the data you need about the real estate market in Jerusalem
We update this blog post regularly so the figures always reflect the latest market conditions.
Jerusalem's rental market is one of the most researched in Israel, yet real neighborhood-level data is hard to find in one place.
Here, we bring together purchase prices, rents, yields, and occupancy data for the city's main residential neighborhoods so you can compare them side by side.
And if you're planning to buy a property in Jerusalem, you may want to download our real estate pack about Jerusalem.
A quick summary of Jerusalem's rental market in 2026
| Metric | Value |
|---|---|
| Jerusalem neighborhood with best rental yield | Pisgat Ze'ev (3-bedroom apartment, 3.3% gross) |
| Jerusalem neighborhood with weakest rental yield | Katamonim (4-bedroom apartment, 2.1% gross) |
| Average gross yield across Jerusalem neighborhoods | ~2.7% |
| Average net yield across Jerusalem neighborhoods | ~2.0% |
| Median purchase price in Jerusalem (across tracked segments) | ~2,780,000 NIS |
| Average monthly rent in Jerusalem (across tracked segments) | ~6,400 NIS |
| Average occupancy rate across Jerusalem neighborhoods | ~94% |
| Fastest-leasing Jerusalem market | Pisgat Ze'ev 3-bedroom (14 days average) |
| Slowest-leasing Jerusalem market | Old Katamon 4-bedroom (24 days average) |
| Highest occupancy in Jerusalem | Pisgat Ze'ev and Rehavia (96%) |
| Best value high-yield segment in Jerusalem | 3-bedroom apartments in middle-ring family neighborhoods |
| Yield gap between best and worst Jerusalem segments | 1.2 percentage points (gross), 1.1 points (net) |
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Jerusalem neighborhoods and property types in 2026, ranked by rental yield
This table ranks the top neighborhoods and property types in Jerusalem by gross rental yield.
For each neighborhood and property type, the table includes average purchase price, average monthly rent, gross rental yield, net rental yield, annual fees, average occupancy, average time to rent, main rental demand, main risk, and investment profile.
By the way, you'll find much more detailed data in our real estate pack about Jerusalem.
| # | Neighborhood | Property type | Gross rental yield | Net rental yield | Average purchase price | Average monthly rent | Ownership annual fees | Average occupancy | Average time to rent | Main rental demand | Main risk | Rental Investment Profile |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Pisgat Ze'ev | Three-bedroom apartment | 3.3% | 2.6% | 2,170,000 NIS | 5,900 NIS | 18,000 NIS | 96% | 14 days | Local families using the light rail | Oversupply pockets in some micro-locations | Top Pick |
| 2 | Pisgat Ze'ev | Two-bedroom apartment | 2.9% | 2.3% | 1,740,000 NIS | 4,200 NIS | 13,000 NIS | 95% | 18 days | Singles and starter couples | Small-unit supply competition | Strong Potential |
| 3 | Pisgat Ze'ev | Four-bedroom apartment | 3.0% | 2.4% | 2,640,000 NIS | 6,500 NIS | 19,500 NIS | 95% | 16 days | Upgrading Jerusalem families | Slower exit in weaker blocks | Strong Potential |
| 4 | Baka | Two-bedroom apartment | 3.1% | 2.4% | 2,100,000 NIS | 5,500 NIS | 16,500 NIS | 95% | 17 days | Singles and young couples | Premium entry pricing risk | Strong Potential |
| 5 | Baka | Four-bedroom apartment | 2.5% | 1.8% | 4,000,000 NIS | 8,200 NIS | 28,000 NIS | 94% | 21 days | Affluent families near the city center | Expensive repairs in older stock | Moderate Appeal |
| 6 | Har Homa | Three-bedroom apartment | 2.9% | 2.3% | 2,410,000 NIS | 5,800 NIS | 18,000 NIS | 95% | 18 days | Young religious-national families | New-build supply competition | Strong Potential |
| 7 | Har Homa | Four-bedroom apartment | 2.9% | 2.3% | 2,690,000 NIS | 6,400 NIS | 19,500 NIS | 95% | 18 days | Move-up family tenants | Higher tower service charges | Strong Potential |
| 8 | Har Homa | Five-bedroom apartment | 2.8% | 1.9% | 3,640,000 NIS | 8,400 NIS | 29,000 NIS | 92% | 27 days | Larger religious-family households | Narrower renter pool | Moderate Appeal |
| 9 | Ramot | Four-bedroom apartment | 2.8% | 2.0% | 3,450,000 NIS | 8,000 NIS | 24,000 NIS | 94% | 22 days | Larger local families | Slower leasing for oversized units | Good Potential |
| 10 | Ramot | Three-bedroom apartment | 2.9% | 2.2% | 2,780,000 NIS | 6,700 NIS | 21,000 NIS | 95% | 19 days | Family renters seeking good schools | Block-by-block pricing dispersion | Good Potential |
| 11 | Gilo | Three-bedroom apartment | 2.7% | 2.1% | 2,250,000 NIS | 5,000 NIS | 15,500 NIS | 96% | 18 days | Budget-conscious Jerusalem families | Uneven building quality | Strong Potential |
| 12 | Gilo | Four-bedroom apartment | 2.7% | 2.2% | 2,750,000 NIS | 6,300 NIS | 18,500 NIS | 95% | 20 days | Value-focused family renters | Older-building maintenance surprises | Strong Potential |
| 13 | Old Katamon | Three-bedroom apartment | 2.8% | 2.0% | 3,150,000 NIS | 7,250 NIS | 24,000 NIS | 95% | 18 days | Central family renters | High acquisition pricing | Good Potential |
| 14 | Old Katamon | Two-bedroom apartment | 2.2% | 1.7% | 2,450,000 NIS | 4,500 NIS | 18,000 NIS | 95% | 19 days | Young professionals near the center | Very thin margin after costs | Moderate Appeal |
| 15 | Old Katamon | Four-bedroom apartment | 2.4% | 1.7% | 4,200,000 NIS | 8,500 NIS | 28,500 NIS | 93% | 24 days | Affluent family tenants | Slower re-letting at high rent | Moderate Appeal |
| 16 | Arnona | Four-bedroom apartment | 2.8% | 2.0% | 3,710,000 NIS | 8,600 NIS | 27,000 NIS | 94% | 22 days | Diplomats and upper-income families | Tower fee drag on net yield | Good Potential |
| 17 | Arnona | Three-bedroom apartment | 2.7% | 2.0% | 3,150,000 NIS | 7,000 NIS | 24,000 NIS | 95% | 18 days | Diplomats and affluent families | Premium pricing with modest yield | Good Potential |
| 18 | Arnona | Two-bedroom apartment | 2.6% | 2.0% | 2,050,000 NIS | 4,500 NIS | 14,500 NIS | 94% | 21 days | Singles near the Talpiot corridor | Small-sample rent volatility | Good Potential |
| 19 | Rehavia | Two-bedroom apartment | 2.7% | 2.0% | 2,860,000 NIS | 6,400 NIS | 23,000 NIS | 96% | 15 days | Academics and central professionals | Very high capital values limit returns | Good Potential |
| 20 | Rehavia | Three-bedroom apartment | 2.6% | 1.9% | 3,560,000 NIS | 7,750 NIS | 25,000 NIS | 95% | 18 days | Academics and foreign tenants | Prestige pricing limits yield | Moderate Appeal |
| 21 | Rehavia | Four-bedroom apartment | 2.4% | 1.7% | 4,460,000 NIS | 8,930 NIS | 31,000 NIS | 93% | 25 days | Affluent local and foreign families | Trophy pricing compresses returns | Limited Appeal |
| 22 | Katamonim | Two-bedroom apartment | 2.9% | 2.2% | 2,450,000 NIS | 5,900 NIS | 20,000 NIS | 95% | 19 days | Students and young couples | Renewal works and street noise | Good Potential |
| 23 | Katamonim | Three-bedroom apartment | 2.3% | 1.7% | 3,150,000 NIS | 6,000 NIS | 22,500 NIS | 94% | 22 days | Students and young families | Urban renewal execution risk | Moderate Appeal |
| 24 | Katamonim | Four-bedroom apartment | 2.1% | 1.5% | 4,350,000 NIS | 7,700 NIS | 29,000 NIS | 93% | 25 days | Local families upgrading space | Too much capital for the rent level | Limited Appeal |
| 25 | Kiryat Hayovel | Three-bedroom apartment | 2.5% | 2.0% | 2,300,000 NIS | 4,850 NIS | 15,000 NIS | 94% | 21 days | Hospital staff and young families | Urban renewal disruption near projects | Strong Potential |
| 26 | Kiryat Hayovel | Four-bedroom apartment | 2.5% | 1.9% | 3,000,000 NIS | 6,300 NIS | 18,500 NIS | 94% | 21 days | Established family renters | Competition from new towers | Good Potential |
| 27 | Kiryat Hayovel | Two-bedroom apartment | 2.3% | 1.8% | 2,000,000 NIS | 3,900 NIS | 13,500 NIS | 94% | 21 days | Students and hospital workers | Older-stock repair bills | Good Potential |
| 28 | Beit Vagan | Four-bedroom apartment | 2.5% | 1.8% | 3,800,000 NIS | 8,000 NIS | 26,000 NIS | 94% | 22 days | Religious family tenants | Large-ticket buyer pool risk | Good Potential |
| 29 | Beit Vagan | Three-bedroom apartment | 2.5% | 1.9% | 3,010,000 NIS | 6,300 NIS | 21,500 NIS | 95% | 20 days | Religious couples with children | Low yield versus entry price | Good Potential |
| 30 | Beit Vagan | Two-bedroom apartment | 2.3% | 1.7% | 2,450,000 NIS | 4,700 NIS | 16,500 NIS | 94% | 23 days | Religious couples and parents | Weak spread after costs | Moderate Appeal |
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Key insights about rental yields in Jerusalem
Insights
- Jerusalem's best gross yield in 2026 sits at 3.3% in Pisgat Ze'ev, which is about 1.2 percentage points higher than the weakest segment tracked. That gap is meaningful for a landlord over a 10-year horizon in a city where prices are high across the board.
- Pisgat Ze'ev three-bedroom apartments rent out in just 14 days on average, the fastest of any segment tracked. The new light rail connection is the main driver, and it makes this combination of speed and yield hard to find elsewhere in Jerusalem.
- Rehavia lets properties fast (15 days on average) but delivers net yields below 2%. You are essentially paying a very large premium for tenant quality and location prestige, not for returns.
- A four-bedroom apartment in Katamonim has a gross yield of 2.1% and a net yield of just 1.5%, the lowest in the dataset. The purchase price is simply too high relative to what renters are willing to pay in that neighborhood today.
- In Gilo, three-bedroom apartments have a lower purchase price than four-bedroom ones but almost the same occupancy rate (96% vs 95%). The smaller unit is actually the more efficient choice in that neighborhood.
- Har Homa is one of the few Jerusalem neighborhoods where three-bedroom and four-bedroom apartments deliver identical gross yields (2.9%). The four-bedroom costs about 280,000 NIS more to buy but also rents for 600 NIS more per month, so the math stays flat across both sizes.
- Jerusalem's net-to-gross yield spread averages around 0.7 percentage points. In premium neighborhoods like Rehavia and Beit Vagan, that spread can reach 0.8 to 1.0 points because ownership costs are higher in absolute terms.
- Five-bedroom apartments in Har Homa show a 92% occupancy rate, the lowest in the dataset. Larger units take longer to fill and attract a narrower pool of tenants. In Jerusalem, going above four bedrooms usually hurts liquidity.
- Kiryat Hayovel is one of the only neighborhoods in Jerusalem where you can buy a three-bedroom apartment for under 2.5 million NIS and still achieve a 94% occupancy rate. That combination makes it a practical starting point for a first rental investment.
- The gap between gross and net yield is bigger in central premium areas. In Rehavia four-bedroom units, costs consume about 0.7 points of yield. In Pisgat Ze'ev, the same cost burden only reduces returns by about 0.7 points too, but on a higher gross yield base, so the net result is still more favorable.
- Across all 30 segments tracked, no Jerusalem neighborhood delivers a gross yield above 4%. This confirms that Jerusalem is a low-yield, high-stability market. Capital preservation and tenant quality tend to come before outright income return here.
- The three-bedroom segment consistently outperforms two-bedroom and four-bedroom units on the combination of yield, occupancy, and time-to-rent. In almost every Jerusalem neighborhood tracked, the three-bedroom is the most balanced choice for a landlord.
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About our methodology
We also believe it is important to show our reasoning. It is one of the ways we make our work solid, transparent, and rigorous, just as you will see in our real estate pack about Jerusalem.
First, please note that this data is updated regularly, so what you see here reflects the current values as of today.
In order to get reliable data, we applied a strict source filter. We only used authoritative, verifiable sources, not random listings or unsupported figures. More on that point below.
For each Jerusalem neighborhood and property type, we aggregated the freshest purchase price and monthly rent data available. When possible, we cross-checked multiple sources to confirm the same range.
This allowed us to estimate rental yield before costs. That is the gross yield, based on annual rent versus purchase price.
We then estimated rental yield after costs. That is the net yield, after recurring ownership and operating expenses.
These expenses can vary by Jerusalem neighborhood. That is why two areas with similar rents can still produce different net returns.
For example, newer tower buildings in Har Homa and Arnona carry higher building service charges. Older stock in Gilo and Kiryat Hayovel may require more maintenance and repair budgets. In neighborhoods with higher tenant turnover, such as student-heavy areas around Kiryat Hayovel, vacancy friction also adds up.
One important note specific to Jerusalem: we did not treat Arnona (Israeli municipal property tax) as a permanent landlord cost in our baseline model. In Israel, Arnona is typically paid by the tenant during active tenancy. However, we did account for vacancy periods and turnover friction in our net-yield estimates, since those periods do fall on the owner.
We also estimated ownership annual fees by combining the main recurring costs for each property type and location. This includes building maintenance and common charges, insurance, minor repair reserves, and expected vacancy friction during turnover.
These estimates were not applied as a flat number across the city. They were adjusted by neighborhood and property type to reflect local conditions as closely as possible.
This table should therefore be read as a structured market estimate, not as an exact guarantee of future performance. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Jerusalem.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our real estate pack about Jerusalem, we rely on verifiable sources and a transparent methodology.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it matters | How we used it |
|---|---|---|
| Israel CBS: Dwelling Prices Table | It is the official Israeli statistics table for average dwelling prices by district, city, and room count. | We used it as the official benchmark for Jerusalem purchase-price levels by room count. We cross-checked all neighborhood-level estimates against this table to make sure no figure fell outside a realistic Jerusalem-wide range. |
| Israel CBS: Average Rents Table | It is the official Israeli statistics table for monthly rent by district, city, and room count. | We used it as the official benchmark for Jerusalem rents at the city level. We used it to sense-check neighborhood asking-rent data and avoid over-reacting to small listing samples. |
| Israel Tax Authority: Real Estate Database | It is the government service that publishes real transaction data to the public, making it the legal source of truth on recorded property sales in Israel. | We used it as the official transaction anchor behind our neighborhood sale-price checks. We relied on it directly and indirectly through portals that surface recent Jerusalem transactions from this dataset. |
| Nadlan: Government Real-Estate Portal | It is the government real-estate portal built directly from official Israeli property and transaction datasets. | We used it to confirm that neighborhood-level transaction lookup is publicly available and current in Israel. We used it to validate the government-side data infrastructure behind our transaction-based estimates. |
| Yad2 Yadata: Pisgat Ze'ev, Ramot, Har Homa, Rehavia, Arnona, Kiryat Hayovel, Beit Vagan | Yad2 is one of Israel's largest residential portals, and its Yadata pages expose neighborhood-level market depth, days-to-rent, and rent distributions. | We used it to anchor asking prices, rent levels, average days on market, and recent transaction examples for each covered neighborhood. We treated its neighborhood patterns as one of the main practical signals for occupancy and time-to-rent estimates. |
| Madadirot: Jerusalem Neighborhood Pages | It is a recognized Israeli market-tracking portal that aggregates asking prices, rents, and transaction data by neighborhood and street. | We used it for neighborhood-level asking rents by room count in Baka, Gilo, Katamonim, and Old Katamon. We then cross-checked those figures against CBS city baselines to confirm they stayed within a realistic range. |
| Komo: Jerusalem Rental Listings | It is a large Israeli classifieds marketplace with live asking-rent listings across the city. | We used it as a live spot-check on current asking rents in March 2026. We used it to test whether our modeled neighborhood rents still matched real active listing ranges at time of writing. |
| Bank of Israel: Regular Publications | It is the Israeli central bank's official publication hub for housing market context, financing conditions, and monetary policy updates. | We used it for broader market context on financing conditions and the housing environment in Israel. We used it to interpret why Jerusalem yields remain modest even in high-demand neighborhoods. |
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