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Investment Apartment in Gush Dan 2026: Yields, Prices, and Top Neighborhoods – The Complete Guide

Buying an investment apartment in Gush Dan in 2026 is one of the most significant financial decisions you can make. The market today tells a nuanced story: rental yields of 2.5%–4% gross, slightly softened prices over the past year, and the transformative Purple Line light rail opening in 2028 all create genuine opportunities. At the same time, an 8% purchase tax on second properties, a 50% equity requirement, and oversupply risk in some new developments demand careful analysis before you sign.

6 דקות קריאה

13 במרץ 2026

בקצרה

In this guide, we examine the most promising neighborhoods for real estate investment in the Bekaa Ono corridor — Kiryat Ono, Givat Shmuel, Or Yehuda, and Yehud — with up-to-date market prices as of January 2026, realistic yield calculations, and a clear picture of the risks and opportunities every investor must understand.

עובדות מפתח

Gross rental yields in Gush Dan range from 2.5% to 4%; a 4-bedroom apartment in Kiryat Ono yields approximately 3%
Purchase tax on a second (investment) property in 2026: 8% on value up to NIS 6,055,070; 10% on the portion above
Required equity for an investment property: at least 50% of property value — per Bank of Israel regulations
Bank of Israel interest rate cut to 4% in January 2026; forecast to reach 3.5% by end of 2026
The Purple Line (Kav Sagol) will include 46 stations connecting Kiryat Ono, Givat Shmuel, Or Yehuda, and Yehud to Tel Aviv — expected to open in 2028
Income tax exemption on rental income up to NIS 5,654/month; partial exemption up to NIS 11,308/month
3-bedroom apartment price in Kiryat Ono: from NIS 2.57M; 3-bedroom in Or Yehuda: from NIS 1.63M

Yields and Prices: How Much Can You Actually Earn?

Before purchasing an investment property in Gush Dan, it is essential to understand the difference between gross and net yield. Gross yield divides annual rental income by purchase price before expenses. In practice, after accounting for purchase tax, maintenance costs, vacancy periods, legal fees, and management, the net yield often falls to 1.8%–2.5%.

In Kiryat Ono, the market trades at premium prices: 3-bedroom apartments start from NIS 2.57M, 4-bedroom from NIS 3.1M, and 5-bedroom around NIS 3.59M. Monthly rentals for a 3-bedroom reach NIS 7,500–8,500. At a purchase price of NIS 3.1M and rent of NIS 8,500, the gross yield is approximately 3.3%, with net yield closer to 2.3%–2.7%. By contrast, Or Yehuda offers lower entry prices (3-bedroom from NIS 1.63M) at comparable rental rates, pushing gross yields toward 3%–4%.

Kiryat Ono: Gross yield ~2.8%–3.3%; premium market with stable demand and low vacancy
Or Yehuda: Gross yield ~3%–4%; lower entry prices and the highest upside from the Purple Line
Yehud: 3-bedroom at NIS 2.1–2.4M; gross yield ~3%; young population and urban renewal underway
Givat Shmuel: Luxury market, gross yield ~2.5%–3%; commands a premium for quality of life
Ramat Gan: Average gross yield ~2.77%; mature city with high rental demand and ongoing urban renewal

The Purple Line: The Real Estate Game-Changer Still to Come

The Purple Line light rail will connect 8 cities with 46 stations, 4-minute frequency, and an expected daily ridership of 256,000 passengers. The opening is targeted for late 2028.

Historical precedent shows that real estate prices along new urban transit lines rise significantly in the years before opening. Purchasing near a planned Purple Line station — particularly in Or Yehuda and Yehud where prices remain relatively low — could generate substantial capital appreciation by 2028–2030.

Or Yehuda: Three stations within city limits; population expected to double or triple; entry prices still accessible
Kiryat Ono: Multiple stations; premium market where Purple Line premium is partially priced in
Yehud: Stations along Highway 461; 6,650 new residential units planned; attractive entry prices
Givat Shmuel: Line branches toward Bar-Ilan University; strong academic and family rental demand

Urban Renewal and Pinui-Binui: The Hidden Investor Opportunity

Kiryat Ono has earned the nickname 'the capital of Pinui-Binui' in Israel. The municipality grants a sweeping exemption from local development levies on urban renewal projects. Large-scale projects like ONO ONE (9 towers, 20 floors each) and Anav Village (255 new units) are already under construction.

Or Yehuda's Saviyon complex project will demolish 184 existing units to make way for 808 new apartments. In Givat Shmuel, the planning committee has approved a Pinui-Binui project on Ben Gurion Street 10–16. Investors must understand the risks: timelines often span 10–15 years and legal complexity is high.

Kiryat Ono: 'Capital of Pinui-Binui' — municipal fee exemptions, fast-tracked processes, multiple active projects
Or Yehuda – Saviyon: 184 old units → 808 new apartments; one of the largest active projects in Gush Dan
Givat Shmuel: Approved Pinui-Binui on Ben Gurion St; central location with high demand
Key due diligence: Is the building in an approved renewal zone? What stage are agreements? Who is the developer?
Upside: Investors who bought into Pinui-Binui buildings before final approval typically realized significant gains

Taxes, Financing, and Hidden Costs: What You Need to Know

The purchase tax on a second property in 2026 is 8% on value up to NIS 6,055,070, rising to 10% above. On a NIS 3M apartment, this amounts to NIS 240,000. Add capital gains tax when you sell, attorney fees, brokerage commissions, and ongoing maintenance.

Bank of Israel regulations cap mortgage financing for second-property buyers at 50% of property value. On a NIS 3M apartment, you need NIS 1.5M in equity. The central bank cut rates to 4% in January 2026 and is expected to reach 3.5% by year-end. Israel's tax law provides a full income tax exemption for landlords earning up to NIS 5,654/month; partial exemption up to NIS 11,308/month.

Purchase tax: 8% up to NIS 6,055,070; 10% above — on a NIS 3M property, that is NIS 240,000
Equity requirement: Minimum 50% of property value per Bank of Israel rules
Interest rate: Cut to 4% in January 2026; forecast at 3.5% by end of 2026
Rental income tax exemption: Up to NIS 5,654/month fully exempt; partial exemption to NIS 11,308/month
Additional costs: Attorney fees (1%–2%), brokerage (2%), building insurance, ongoing maintenance
Capital gains tax applies at sale; holding period affects the rate

צ׳קליסט

Investment Property Checklist for Gush Dan 2026

Before signing any contract, run through this checklist to ensure you are making the most informed decision possible:

1Define your goal: Are you seeking steady rental cash flow or long-term capital appreciation? Compare neighborhoods accordingly
2Calculate true net yield: Include purchase tax, attorney fees, renovation costs, expected vacancy (1–2 months per year), insurance, and income tax on rent
3Verify legal status: Hire a real estate attorney to check land registry, building permits, liens, and urban renewal agreements
4Assess neighborhood infrastructure: Is there a planned Purple Line station nearby? What does the municipal master plan show?
5Research actual rental demand: Ask a local agent how long apartments have sat vacant in that specific neighborhood over the past 12 months
6Get conditional mortgage approval before searching: Bank of Israel caps investment-property mortgages at 50%
7Consult a CPA: Determine whether the tax-exempt track or the 10% flat-tax track is more advantageous
8Compare alternatives: Could REITs, corporate bonds, or overseas real estate deliver better risk-adjusted returns?
9Contact Shmuel at HaNakhas BeGova HaEinaim: Years of experience in Kiryat Ono, Givat Shmuel, Ganei Tikva, and Ramat Gan

שאלות נפוצות

שאלות ותשובות

Bank of Israel regulations require second-property buyers to provide at least 50% equity. On a NIS 3M apartment, that means NIS 1.5M in equity. Add 8% purchase tax (NIS 240,000) and approximately NIS 50,000–80,000 in transaction costs, and the total capital outlay reaches roughly NIS 1.75–1.8M.

New developer apartments often come with 10:90 payment plans that allow high leverage. Second-hand apartments generate immediate rental income and offer more realistic yield calculations. In Gush Dan, second-hand apartments in established neighborhoods typically deliver better cash flow, while new developer units suit investors seeking capital gains over a 5–10 year horizon.

The Purple Line, expected to open in late 2028, is already influencing prices along the corridor. In Or Yehuda and Yehud, significant appreciation is expected in the 2–5 years ahead. In Kiryat Ono and Givat Shmuel, where some premium is already priced in, upside remains but will narrow.

In 2026, rental income up to NIS 5,654/month is fully exempt from income tax. Between NIS 5,654 and NIS 11,308/month, a partial exemption applies. Above NIS 11,308/month, landlords can choose between a flat 10% tax on gross income or the standard marginal-rate track with expense deductions.

The 2026 market offers real opportunities: prices softened, interest rates are declining, and the Purple Line corridor is in its early appreciation phase. If you have sufficient equity, a 7–10 year investment horizon, and are buying near a Purple Line station in the right neighborhood, 2026 can be a strong entry point.

Gush Dan in 2026 is a mature, complex investment market. It does not offer the high rental yields found in peripheral cities, but it provides something rare: stable rental demand, liquid exit options, transformative transit infrastructure on the horizon, and urban renewal opportunities that generate real value. Kiryat Ono remains one of the highest-quality cities in Gush Dan, while Or Yehuda offers the most accessible entry point on a corridor that is about to change fundamentally.

At HaNakhas BeGova HaEinaim, we have been advising buyers, sellers, and investors in Kiryat Ono, Givat Shmuel, Ganei Tikva, and Ramat Gan for years. If you are considering an investment property in the area and want professional, honest guidance — reach out. We are here to help you make the right decision.

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