Rental Yield in Israel 2026

Yield comparison by city. CBS Q3 2025 data.

How to calculate rental yield?

Gross yield = (Annual rent / Purchase price) × 100. Net yield accounts for charges (arnona, maintenance, vacancy) and is typically 1 to 1.5% below gross.

Beer Sheva: Israel's best yield

With 6.2% gross yield, Beer Sheva tops the ranking thanks to very accessible prices (14,200 ₪/sqm) and strong rental demand (BGU students, military). Price growth (+7.8%) creates a dual-leverage investment.

The chart above shows gross rental yields: annual rent divided by purchase price, before costs. Net yield deducts arnona (municipal tax), building charges, maintenance, insurance and vacancy between tenants. The reading rule displayed on this site is simple: net generally sits 1 to 1.5 points below gross.

Another limit to keep in mind: a high yield often signals a low purchase price, not necessarily a high rent. Beersheba tops the ranking because its prices remain accessible, with rental demand driven by Ben-Gurion University and the nearby military bases. Conversely, Tel Aviv combines the lowest gross yield among major cities with the strongest appreciation potential: two different strategies, not a quality ranking.

Beersheba shows a 6.2% gross yield, Haifa 5.5% and Netanya 4.8%. Jerusalem stands at 4.1%, Tel Aviv at 3.2% and Herzliya at 3.0%. These magnitudes match the chart published on this page; they are for comparing cities with each other, not for promising an income: the real yield of a property depends on its neighbourhood, condition and management.

Set these yields against the average prices of the first half of 2026 (CBS data analysed by Ynet): ₪1,248,000 in Beersheba, ₪1,780,000 in Haifa, ₪2,730,000 in Netanya, ₪3,089,000 in Jerusalem and ₪4,450,000 in Tel Aviv. The entry ticket explains most of the yield gap — and each city page details the neighbourhoods where these averages make sense.

Rental yield is only half the equation. In the first half of 2026, average prices rose 4.7% in Haifa and 2.1% in Netanya, stayed stable in Jerusalem and gained only 0.4% in Beersheba, while Tel Aviv advanced 6.6%. An investor seeking regular income and an investor seeking appreciation will not choose the same city — and many combine both in a portfolio.

To compare properly, start from the real purchase price of a development — the catalogue lists 253 of them across 49 cities — then apply the method above with a market rent verified in the neighbourhood. The Israel property prices 2026 page gives price references by city; the yield simulator and the site's budget simulators then turn those references into a costed scenario for your project.

For a buyer living abroad, net yield depends as much on management as on the property: finding the tenant, collecting rent, maintaining, handling the unexpected. That is why IsraelStart support includes introductions to local property managers, and why the investing-from-abroad guide devotes a full section to remote management.

A final methodological point: always compare like with like. A yield computed on a promotional asking price or on a hoped-for rent with no neighbourhood reference is worthless. The catalogue's development listings, the city pages and their market data exist to anchor every estimate in published, dated figures.

Three items often escape the first calculation: vacancy between tenants, longer in neighbourhoods with abundant supply; initial works and furnishing, especially in new builds delivered bare; and management fees when you let from a distance. Integrating them from the start avoids comparing a theoretical yield with a real one.

A last blind spot: the exit. A property that is easy to resell — sought-after neighbourhood, clean documents, up-to-date Tabu registration — protects the operation's overall return. That is one more reason to have the title and documents checked by your lawyer at purchase time, not only when selling.