An 85 square meter, four room apartment on Balfour Street in Jerusalem’s Rehavia neighborhood has been sold for NIS 5.35 million. The apartment on the corner of Ovadia from Bertinoro Street is just 30 meters from the Prime Minister’s residence.
The price of the deal is significantly higher than the average prices in the area, at about NIS 63,000 per square meter. In February 2023, another similar-sized apartment in the building was sold for NIS 4.7 million. Thus the price has increased 14%, which is much higher than the price increases recorded over the past two years.
Rehavia is one of Jerusalem’s oldest and most prestigious neighborhoods, which is close to the city center. Much of the historic neighborhood was owned by the Greek Orthodox Church, until the start of the 20th century when it went bankrupt and the Jewish National Fund and the Israel Land Development Co. (Hachsharat Hayishuv) bought up the land.
The neighborhood’s planners developed a garden suburb, with apartments, gardens and public spaces. The Balfour Street apartment is in the east of the neighborhood, on the border of the Kommiyot neighborhood (Talbiah). Apartment prices in Rehavia average around NIS 58,000 per square meter. Older apartments are being sold for about NIS 50,000 per square meter, while new apartments, built according to preservation plans, are sold for at least NIS 65,000 per square meter. The Balfour Street apartment sold now was built in 1950.
Real estate appraiser Kobi Bir says, “Medium plus apartments in the area sell for about NIS 50,000 per square meter or more. However, this deal is in an excellent location, although these days, there are many demonstrations there. It is the most central location in the city and therefore also one of the most expensive. So a price range of NIS 60,000 per square meter is not unusual, even if it is higher than average. When it comes to new apartments, prices soar even higher and can reach NIS 100,000 per square meter, so the deal seems reasonable.
“Regarding the price differences over the last two years, it is possible that the previous owners undertook renovations to the apartment, which increased its value.”
Does proximity to the Prime Minister’s residence have an impact. “I don’t think it really has an impact, but if anything the proximity to the Prime Minister’s residence should lower the value, not increase it,” says Bir. “You have limited movement there, and every time you want to park your car, you are checked, because you are essentially entering a closed zone.”
In contrast, in real estate with religious significance, proximity to those considered community leaders or a major Torah institution is significant. For example, apartments and houses in the Jewish Quarter, which are close to the Western Wall, can sell for many millions.
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“Once, they sold an apartment near the Sanhedria Cemetery in Jerusalem. They hung a sign on the apartment, ‘The apartment closest to the grave of Rabbi Ovadia Yosef,'” says Bir. “An ultra-Orthodox Jew with money in his pocket will agree to pay more to live near his rabbi. But this is what we call in professional parlance a ‘special buyer.’ This is not a market price.”
The bottom line: The Rehavia deal is further proof of the real estate mantra “location, location, location.” Although the building is not impressive and lacks uniqueness – at least from the outside – and the apartment’s area is small compared with the norm these days, the price of the apartment is especially high, due to the excellent location.
Published by Globes, Israel business news – en.globes.co.il – on May 4, 2025.
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