Ashdod vs. Ashkelon – Comparison of real estate prices, trends and gaps for 2024

How much does a square meter cost? Where is it better to invest? And what is expected in the near future in the southern market?

Ashdod, one of the largest and most developing cities in Israel, has enjoyed high real estate prices for years. In 2023, the average price per square meter in the city was approximately 20,500 NIS. The high prices stem from several factors:

1. Transportation accessibility : Proximity to the central area and easy access to main roads.
2. Quality of life : Advanced infrastructure, high-level education, and developed urban services.
3. Low supply : A shortage of available land for construction limits supply and raises prices.

In 2024, prices in Ashdod continued to rise, albeit at a more moderate pace, reaching approximately 21,500 NIS per square meter. The slower increase was due to a general slowdown in the national and global real estate market following economic crises and financial uncertainty.

The market in Ashkelon

Ashkelon, which is primarily known for its spectacular beaches and developing neighborhoods, has also seen an increase in real estate prices, although at a faster rate than Ashdod. In 2023, the average price per square meter in Ashkelon was approximately 17,000 NIS. Several factors have influenced real estate prices in Ashkelon:

1. Development of new neighborhoods : such as the Wine City neighborhood, which led to an increase in demand for apartments in the city.
2. Discounts in tenders : Projects such as "Price for the Tenant" and "Target Price" that offered apartments at prices significantly lower than the market.
3. Transportation improvement : Transportation projects that reduced travel times to Tel Aviv and other major cities.

In 2024, prices in Ashkelon continued to rise, reaching approximately 18,500 NIS per square meter. The sharp increase stems from increasing demand for apartments in the city, mainly due to price increases in the center of the country, which led many families to seek housing at more affordable prices in the southern regions.

Comparison and gap analysis

The gap between prices per square meter in Ashdod and Ashkelon was approximately 3,500 NIS in 2023 and narrowed to approximately 3,000 NIS in 2024. The narrowing of the gap stems from the sharp increase in prices in Ashkelon compared to the moderate increase in Ashdod. Several factors influenced the process:

1. Growing demand for residential areas in the periphery : Families and investors are looking for apartments at more affordable prices, which increases demand in cities like Ashkelon.
2. Government projects : Projects such as "Price for the Tenant" and "Price for the Goal" provided apartments at affordable prices that contributed to an increase in demand in Ashkelon.
3. Infrastructure development : Investments in transportation infrastructure and urban services improve the quality of l