Rishon LeZion Real Estate Market Report: Q1 2025

The real estate market in Rishon LeZion displayed notable strength during the first quarter of 2025, with residential transactions growing by 12.2% compared to the same period in 2024. The average property price reached ₪2,430,000 by the end of March, reflecting an 8.5% annual increase. As Israel’s fourth-largest city, Rishon LeZion benefits from its strategic location between Tel Aviv and the southern metropolitan corridor, its diverse neighborhoods, and an ongoing commitment to urban development and renewal.

Approximately 1,320 residential transactions were completed between January and March, highlighting strong demand across a range of property types. The average price per square meter rose to ₪19,500, marking a 10.1% increase compared to Q1 2024. Properties spent an average of 60 days on the market, with well-located homes selling faster, particularly in areas close to the coast and central business districts. Total mortgage volume for residential purchases exceeded ₪3 billion, a 15% increase from the previous year, indicating resilient buyer activity despite modest rises in interest rates.

Apartments continued to lead the market, with around 1,090 units sold at an average price of ₪2,160,000. Penthouses attracted steady attention, recording 44 sales with an average price of ₪4,700,000, driven by demand for premium living spaces. Detached houses and villas accounted for 92 transactions, averaging ₪4,910,000 per property. Garden apartments, favored by families, maintained a solid presence, with 67 units sold at an average price of ₪2,820,000. Duplexes also posted moderate gains, with 18 units sold at an average price of ₪3,620,000.

Neighborhood performance varied across the city. Premium locations such as Golden Mile and the Beach Area recorded the highest price growth during Q1, with properties averaging ₪4,450,000 and ₪3,920,000, respectively. Homes in Nahalat Yehuda and Neve Eliyahu continued to attract luxury buyers, achieving average prices above ₪4,200,000. West Rishon and the New West Development areas remained popular among families and young professionals, with average prices between ₪3,300,000 and ₪3,400,000. Meanwhile, neighborhoods such as Ramat Eliyahu and East Rishon provided more affordable entry points, maintaining average residential prices below ₪2,200,000.

Development activity remained vibrant during the first quarter, with several new projects advancing rapidly. In the Golden Mile Towers, over 76% of the 348 luxury units were sold by the end of March, with prices averaging ₪28,200 per square meter. The West Rishon Complex and Marina Heights also reported strong pre-sales rates, appealing to buyers seeking beachfront access and modern amenities. Urban renewal efforts across the city center and East Rishon added additional inventory, particularly through affordable housing initiatives and Pinui-Binui projects.

Rishon LeZion's commercial real estate sector continued its expansion during Q1, especially in retail and entertainment venues. Office space transactions totaled about 54 deals with an average price of ₪4,120,000. Retail properties performed strongly, fueled by consumer demand and new shopping center developments, with 74 sales averaging ₪3,800,000. Mixed-use properties grew in popularity, combining residential, office, and leisure elements in centrally located projects such as the Rishon Business Center and the West Mall Expansion.

Rental returns remained attractive across various property types. Apartments delivered gross yields of approximately 3.7%, while penthouses and garden units yielded between 3.2% and 3.5%, depending on location. Retail and office investments produced stronger returns, particularly within the expanding entertainment and business zones. Rental rates for residential properties continued to climb, with an average monthly rent of ₪6,200 by the end of March, reflecting an 11% year-over-year increase. Vacancy rates remained low, averaging around 2.2%, while lease terms gradually lengthened as tenants sought to secure more favorable long-term contracts.

The city’s evolving urban character supported a variety of specialized market segments. Beachfront properties within 1km of the shore experienced price gains exceeding 13% over the past year, as lifestyle buyers prioritized leisure amenities and easy access to coastal attractions. Family-focused neighborhoods recorded a noticeable uptick in demand for larger units, particularly four-bedroom homes, driven by Rishon’s strong education infrastructure and abundant parks. Urban professional buyers sought one- and two-bedroom apartments near transportation hubs like the planned light rail stations, paying premiums for properties offering work-from-home features and high-speed connectivity.

Several positive trends continued to boost market confidence in Q1. The light rail link to Tel Aviv neared partial completion, increasing Rishon’s attractiveness to commuters. Investment in beach-area amenities and expanded shopping and leisure facilities reinforced the city’s appeal for lifestyle buyers. The steady development of business parks, such as the Moshe Dayan Tech Park, contributed to growing employment opportunities within city limits, reducing residents' dependence on commuting to Tel Aviv.

Nonetheless, challenges persisted. Traffic congestion remained an issue during peak commuting hours, particularly in the western parts of the city. The growing density of high-rise construction altered the character of some neighborhoods, prompting calls for more balanced development. Affordability remained a concern for young buyers, as new luxury projects commanded prices well above the city's traditional averages.

Looking ahead to the next quarter, Rishon LeZion’s property market is expected to continue its upward trajectory. Price growth of between 7–9% is forecast for Q2 2025, with transaction volumes projected to rise by another 10–12%. Rental rates are likely to continue increasing, particularly in waterfront areas and neighborhoods adjacent to major commercial hubs. New project launches, especially in the Golden Mile, Marina, and New West areas, are anticipated to add premium inventory while maintaining competition among buyers.

This report is based on transaction data collected from January 1 to March 31, 2025, sourced from Israel Land Authority records, municipal planning data, leading real estate agencies, mortgage lender statistics, and construction permit filings. It reflects approximately 1,320 residential and 210 commercial transactions during the reporting period.

Prepared by www.offplanisrael.com, a firm specializing in Israeli property market analysis, this report provides detailed insights into emerging trends and investment opportunities across Rishon LeZion. For customized research, market forecasts, or buyer advisory services, please contact them.

Disclaimer: This report is for informational purposes only and should not be considered investment advice. Although care has been taken in compiling the data, market conditions can change quickly, and no guarantees of future performance are implied.