Light rail boosts Jaffa home prices

Whereas Tel Aviv is seeing a fall within the variety of offers and house costs, a unique image is now rising in Jaffa. The historic port metropolis is experiencing sturdy demand, and in keeping with actual property brokers, costs are even rising in sure areas. The rising curiosity is attributed, amongst different issues, to the operation of the sunshine rail Pink Line which has related Jaffa on to the center of Tel Aviv.

The opening of the Pink Line in August 2023, after a delay of a couple of decade, has led to a big change in public transport in all the Tel Aviv metropolitan area and in Jaffa specifically. The road, which connects Bat Yam, Tel Aviv, Ramat Gan, Bnei Brak and Petah Tikva, has turned Jaffa right into a central and way more accessible transit level.

“We started to see the rise in demand for residences in Jaffa in the course of the Covid interval within the midst of labor on the Pink Line,” says Talya Bar, proprietor and accomplice of RE/MAX Benefit Jaffa actual property company. “Even then, we noticed an inflow of enormous contractors like Acro and Hagag. These corporations understood that the opening of the Pink Line would result in the migration of individuals from central and northern Tel Aviv, as they got the chance to pay decrease costs than Tel Aviv and transfer round simply.”

Bar says that patrons in Jaffa are very various, each by way of age and by way of the aim of the acquisition. “The rising curiosity in Jaffa got here from a number of instructions. There are overseas traders who’re discovering the potential within the metropolis, and in addition younger individuals who wish to dwell in Jaffa and might discover residences which might be slated for city renewal initiatives at engaging costs.

Alongside this, we see a terrific many aged Jerusalemites who’re concerned about transferring house to Jaffa,” says Bar, explaining that Jerusalem and Jaffa share comparable traits as historical cities that appeal to many patrons from the capital of Israel. “The proximity to the ocean and Tel Aviv, together with the opening of the Pink Line, which utterly upgrades the town’s transport capability, attracts many retirees right here,” she explains.

One other actual property agent who works in Jaffa is Omri Kakoon of the Harova company. He agrees with Bar and says that the rise in costs is felt primarily in north Jaffa. “The northern a part of the town has undergone a big facelift, each by way of the way it appears and inhabitants.”

He says the rise in house costs in Tel Aviv has led to an inflow of consumers who’re getting the standard of life they aspire to in Tel Aviv, at decrease costs. “The rise in costs within the north of the town has additionally raised the standard of the inhabitants within the space.”

Improve within the variety of city renewal initiatives

In accordance with Tel Aviv-Yafo Municipality information, the numerous change within the variety of permits acquired for city renewal initiatives got here with the opening of the Pink Line within the metropolis. Thus, between 2020 and 2022, no constructing permits had been issued for any initiatives in Jaffa, and in 2023 just one constructing allow was issued. In 2024 six permits had been issued, and as of August 2025, three further constructing permits had been issued within the metropolis, for a complete of 234 housing models.

One of many new initiatives in Jaffa is the Younger Tel Aviv-Jaffa undertaking, by the Hagag Group, on Sahron Road. The undertaking, which is at present underneath development, consists of two 14-floor towers with 123 housing models, and covers 3,175 sq. meters. Hagag reported in its monetary report for the second quarter that 34 contracts have been signed within the undertaking thus far, and that the common value per sq. meter is NIS 33,849.

One other undertaking of curiosity within the metropolis is the GO YAFO undertaking. Acro received an Israel Land Authority tender with Ashdar to construct 412 houses and business area on a 9 dunam (2.25 acre) lot, which was previously the Maccabi Jaffa soccer stadium. The plan was accredited in 2017 for 160 dunam (40 acres) between Heinrich Heine Road to the east, Nahal Sorek Road to the south, Nes Goyim Road to the north, and Gaza and Beersheva Streets to the west. 65% of the world is owned by the state and the remaining by Tel Aviv-Yafo Municipality. After many delays, 1,460 houses can be constructed on the positioning, half of which can be in authorities sponsored initiatives, 48% of which can be for Tel Aviv residents together with 30 for Jaffa residents, and 10 residences for public housing residents.

Alongside housing initiatives, Tel Aviv-Yafo Municipality has begun constructing the primary group heart nation membership of its variety in Jaffa in 2023 – Beit Cherner, with 5 swimming swimming pools, a spa, a fitness center and studio rooms, an auditorium, a fitness center and extra, which is scheduled to open in 2026.

Relying on the neighborhood: a variety of costs

In relation to costs within the metropolis, Bar says that the vary could be very huge, relying on the completely different neighborhoods. “In northern Jaffa – within the space of the flea market, Noga theater and the American Colony, costs can attain 45-50,000 per sq. meter, just like costs in central Tel Aviv,” she explains.

Nevertheless, Bar says that her workplace can also be seeing a rise in demand in much less engaging neighborhoods in Jaffa, that are scheduled to endure future city renewal, or are positioned close to city renewal initiatives. Bar provides an instance of a deal that was not too long ago signed in Jaffa D on Nardor Road. This can be a 52 sq. meter, three-room, fourth ground house (with out an elevator) with a month-to-month lease of NIS 4,300. The house is within the strategy of being demolished and rebuilt and was offered a month in the past for NIS 1.82 million.

On the identical time, Bar mentions one other deal within the Tzahalon neighborhood on Tzihatli Road, the place a 120 sq. meters, 5 rooms mini-penthouse with a storage room, two parking areas and a balcony, was offered just a few weeks in the past for NIS 5.5 million.

Kakkon says that in north Jaffa, excessive demand additionally results in sure offers closing above market value. He mentions a deal that was not too long ago closed in north Jaffa at 6 Rabbi Tanchum Road (the Rova complicated), which is close to the flea market. A 62 sq. meter, 2.5-room house with a basement, and 20 sq. meters of balconies, a storage room, and two parking areas was offered for NIS 3.8 million – above the market value. “Demand for the house was very excessive and ultimately there have been two patrons who had been concerned about closing the deal. Certainly one of them supplied a better value than the market value and our shopper closed with him,” he says.

One other deal he mentions is within the Eliphelet 26 undertaking (the Ikea undertaking) within the American colony on the border with Florentin. “This can be a new undertaking, with a fitness center, pool and safety guard within the constructing. The 62 sq. meter house that was offered has two rooms, a 14-square-meter balcony, and consists of parking. The house was offered originally of the month at a document value within the complicated, for NIS 3.9 million.

“There are fairly just a few alternatives hidden within the metropolis”

One other agent in Bar’s workplace at RE/MAX, Kamal Abu Dahoud, who specializes within the Ajami neighborhood in Jaffa, explains that prime rates of interest have weighed on a number of the metropolis’s mortgage debtors. “We’re certainly witnessing a wave of demand in Jaffa, and a part of additionally it is associated to the potential that patrons acknowledge as a result of comparatively engaging costs for the world,” he explains.

Within the previous Ajami neighborhood, for instance, which is close to the seashore, a big 180 sq. meter backyard house in a listed constructing with an 80 sq. meter yard is up on the market. In accordance with an appraiser’s estimate, the house is value NIS 4 million, however solely NIS 3.5 million is being requested.

“The hole between the asking value and the value estimated by the appraiser could be very giant, we’re speaking about NIS 20,000 + per sq. meter,” says Abu Dahoud. “It is very tough to search out such offers in Jaffa, however there are house house owners who’re compelled to decrease costs because of excessive rates of interest, after mortgage funds have risen significantly.”

Abu Dahoud’s believes that at some point Jaffa can be “Some of the costly cities on the planet,” and he estimates that the wave of curiosity stems from the popularity of the long-term potential for revenue sooner or later.

Printed by Globes, Israel enterprise information – en.globes.co.il – on September 11, 2025.

© Copyright of Globes Writer Itonut (1983) Ltd., 2025.