Investment Reality
Average commercial property prices in Beit Shemesh range from ₪12,000–₪18,000 per m² for prime retail and ₪8,000–₪11,000 per m² for industrial assets. Properties above ₪5M typically include 400–700 m² retail units on Derech Yitshak Rabin or larger logistics facilities in the northern industrial zone.
Price Dynamics
- 5-year average annual growth rate: 6.2%
- Rental yields: 5–7% net, depending on tenant profile
- Commercial property tax (Arnona): ₪250–₪350 per m² annually for retail
What ₪5–10 Million Gets You
| Asset Type | Size (m²) | Location | Expected ROI |
|---|---|---|---|
| Prime Retail Unit | 450–550 | City Center, Derech Yitshak Rabin | 5.5–6.5% |
| Logistics Warehouse | 800–1,000 | Northern Industrial Zone | 6–7% |
| Office Floors | 400–600 | Ramat Beit Shemesh Business District | 5–6% |
Market Trends
2021
2022
2023
2024
Why Commercial Properties Over ₪5M For Sale Beit Shemesh Wins
- Fastest-growing city in Israel: population growth >4% annually
- Strong retail demand from young families and expanding communities
- Government-backed infrastructure projects improving accessibility
- Lower entry barrier compared to Tel Aviv while offering solid yields
Reality Check
- High Arnona costs reduce net ROI in retail segments
- Limited availability of large-scale assets within city center
- Tenant risk: dependency on local retail and service operators
- Parking shortages in central districts can affect tenant retention
Who Belongs Here
Ideal investors are long-term holders seeking stable cash flow with moderate appreciation. Private investors, family offices, and institutional buyers focused on retail or logistics align well. Short-term speculators may find liquidity limited compared to Tel Aviv or Jerusalem.
Versus the Competition
| City | Price per m² | Yield | Growth (5y) |
|---|---|---|---|
| Beit Shemesh | ₪10,000–₪15,000 | 5–7% | +6.2% |
| Jerusalem | ₪15,000–₪22,000 | 4–5% | +4.8% |
| Tel Aviv | ₪25,000–₪35,000 | 3–4% | +7.0% |
Neighborhood Breakdown
- City Center: Best for retail strips, high pedestrian traffic, limited parking
- Ramat Beit Shemesh: New business district, modern office supply, growing demand
- Northern Industrial Zone: Logistics and warehouse hub with yields up to 7%
- Entrance Corridor (near Route 38): Development potential, strong visibility, high commuter traffic
Frequently Asked Questions
The Bottom Line
Commercial assets over ₪5M in Beit Shemesh offer a compelling mix of healthy yields, population-driven demand, and long-term growth potential. While operational costs and liquidity challenges exist, the city’s expansion and infrastructure upgrades position it as a strategic alternative to Jerusalem and Tel Aviv for investors seeking balance between yield and capital appreciation.
Expert guidance makes all
