378,000 NIS was the price paid against an apartment in 107 Jerusalem Street in Jaffa in 2003, which was reselling in November 2020 for 1.43 million New – 278 % higher than the average price height for an apartment during the same period in Tel Aviv.
In another example, an apartment was sold in 132 Jabotinsky Street in Ramat Gan for 1.51 million NIS in 2008 and then again for 1.65 million New in 2013, an increase of only 9 % over five years.
These two examples are only many hundreds that have been examined in the research conducted by OHAD DANOS, to conduct a survey commissioned by the NTA Metropolitan mass transit system, the governmental authority that carries out the construction of the light rail network in the Tel Aviv and metro region.
The study analyzed 658 apartments, each of which has at least a deal between 2000 and 2024. These apartments spread over 197 different pieces in 40 pieces and five cities along the red line, and the study is extracted from the unambiguous conclusion in the apartments, in the reservation, in any cases of a barb, in any cases of stibens, in any patience, in any of the apartments. An increase in growth to 94 % was found.
What is the size of the increase? On this issue, the differences between cities were observed. The annual increase in Petah Tikva was 4 %, in Bat Yam and Ramat Gan 6 %, in Bnei Brak 8 %, and in AVIV 17 %.
“The big increase comes with the process”
The apparent Ouhad Danus explains that in the first stage of the study, a list of all pieces that contain apartments along the light railway and stations in Tel Aviv, Pat Yam, Ramat Gan, Bani Barak and Betah Tekva.
In the second stage, the housing units were chosen in which more than 24 -year transaction was completed, by publishing the red line building plan until the start of light railway operations in August 2023.
The transactions that were included in the Tama 38 plan, unusual parties and transactions, and transactions with lost information from the study were excluded.
Danos explains that the value gap increases between cities in terms of the impact of parking. “The light railway value may increase in residential areas where there is a lack of parking.”
How can we explain nearly 9 % of cases where there was a decrease in value?
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“I have no explanation,” says Danus.
Green and purple lines are now built in Gush Dan, then the metro. Is there a stage where you see a significant increase? When do you recommend investors to buy?
“The big increase comes with the launch. We have seen this in a similar study we conducted in Jerusalem. Here it is still unclear because the red line was working for a relatively short period and in the circumstances of the war. But it must be clear to any reasonable investor today who does not move it in this matter, but it is not limited to that, but it is already changing. In the middle of Tel Aviv.
“What is still clear to investors is that this is one line currently, but within a few years, there will be a network of light railway trains here and then the metro. Each built line does not add twice the value but 4-5 times.”
Do you recommend buying now? Isn't the market already pricing in the increase?
“It is already pricing, but we have seen that there are additional increases in the value and jumps that come in the end. All investigative studies that are conducted have one defect – they are at the end. But we know that there are areas within a specific city that can jump and there are other areas that can fade.
“If you look at the Jabotinsky axis, this is really similar to deduction surgery – you are to expand the artery and leave blood flow. This is an improvement in the standard of living not only at the national level but in actual property, so the timing now. You can use negotiations in business, noise, chaos and traffic changes to get a better deal.”
“Do you think that if the train is working on Shabs, then this will have enlightened the value more?
“Certainly. This will make a major change for more people and improve living conditions along the way more.”
“The audience realizes the benefits”
The study of the study is a previous study conducted on the operation of the red line in Jerusalem. The study followed a similar methodology, but only 84 transaction groups were identified during the 22 -year period examined and also indicated a significant increase in value.
“The results of the survey appear more clearly, and the audience also realized the benefits of light and metro railway near residential and commercial real estate, especially in the first line,” Nta VP Land Property Inbal Kanka “Globes”.
“These visions are translated into an increase in property values due to the expectation of high demand. The increase in value indicates a deep understanding that the light rail network in Dan Dan and in the future, the metro project is the real solution to congestion and traffic strikes, and this will happen more seriously more crushed. For operation.
“Commercial real estate abroad has increased by 10 % -20 %”
Paz Group has studied cases from all over the world, and its CEO Daniela Paz Erez tells Globes that the Israeli issue is not unique. “The most important study is Crossrail in London, Elizabeth's line, which was opened two years ago. There were surveys from the day when the path was announced even near its opening, which indicated a 20 % increase in real estate values, especially before the opening, by exceeding the general increase in real estate values.
“In Israel, we see the rise on the Jaffa road in Jerusalem, especially in the trade. There was a decrease during the construction period, then there was an increase in value. But it must be remembered that the increase in the value of real estate is only one side and there are other effects, such as the need for parking, which greatly reduces the cost of underground parking.
“There is a possibility to build mixed use and this becomes more relevant, because there is the possibility of arrival during the day and these advantages are also economic importance: an increase in value due to the planning program that affects the Earth.”
It was published by Globes, Israel Business News – En.globes.co.il – on March 6, 2025.
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