Versus the Competition
Compared to Jerusalem (₪18K-₪25K for similar houses) and Modi’in (₪12K-₪18K), Beit Shemesh remains 10-20% cheaper while offering larger plots. Rental yields are similar to Modi’in (~3.5%) but below Jerusalem (~4%).
| City | Monthly Rent (₪) | Avg. House Size (m²) | Yield % |
|---|---|---|---|
| Beit Shemesh | 10K-15K | 220-300 | 3.2-3.6% |
| Jerusalem | 18K-25K | 180-250 | 3.8-4.2% |
| Modi’in | 12K-18K | 200-280 | 3.4-3.7% |
Investment Reality
Rental houses in the ₪10K-₪15K range typically equate to assets valued at ₪4.2M-₪5.5M. Price per m² averages ₪19K-₪22K in Ramat Beit Shemesh Alef, slightly higher in Gimmel. Yearly rent growth has averaged 6-7% over the past 3 years.
Market Trends
2021
2022
2023
2024
Neighborhood Breakdown
- Ramat Beit Shemesh Alef: Detached homes, strong Anglo community, rents ₪11K-₪14K.
- Ramat Beit Shemesh Gimmel: Newer builds, modern infrastructure, rents ₪12K-₪15K.
- Mishkafayim: More central, larger plots, limited supply, rents skew high at ₪14K-₪15K.
Ideal Resident Profile
Tenants are typically large families (5-7 members), often Anglos or national-religious, seeking proximity to schools and synagogues. Monthly income levels usually exceed ₪40K, ensuring rent stability. Car ownership is nearly universal, making parking availability crucial.
Reality Check
- Property tax (Arnona) is high for large villas: ₪1,800-₪2,200/month.
- Traffic congestion into Jerusalem/Tel Aviv remains a challenge despite new rail line.
- Liquidity risk: resale market can take 6-9 months to close deals for properties above ₪5M.
Compelling Advantages
- Rental demand is resilient: vacancy rates under 3%.
- Community infrastructure: strong schools, religious institutions, and parks.
- Space advantage: houses average 250 m² with gardens, rare at this price near Jerusalem.
Frequently Asked Questions
The Bottom Line
Beit Shemesh houses renting at ₪10K-₪15K offer investors stable family tenants, strong community demand, and steady appreciation. While liquidity risk and Arnona costs must be weighed, the long-term fundamentals remain attractive versus nearby markets. Growth will likely continue at 5-7% annually as infrastructure expands and demand outpaces supply.
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