1. Introduction: The Rising Demand for Student Accomodation in Israel
Since October 7th, Jewish students worldwide have faced an alarming rise in antisemitism on university campuses, particularly in the U.S. and Europe. As a result, more Jewish youth are choosing to study in Israel, where they can pursue higher education in a safe and supportive environment. Universities such as Hebrew University, Tel Aviv University, Bar-Ilan, Ben-Gurion, and the Technion are seeing increased interest from international students, further fuelling the demand for student housing.
For instance, Ben-Gurion University of the Negev reported that approximately 600 students from 64 countries chose to continue or begin their academic journey there, despite the ongoing conflict. Additionally, Bar-Ilan University in Ramat Gan saw a 20% increase in new immigrant enrollments. These figures suggest a growing trend of Jewish youth and international students opting to study in Israel, likely influenced by rising antisemitism on campuses abroad and a desire for a supportive educational environment, at internationally acclaimed institutions.
2. Guaranteed Rental Security: Investing Near Universities
One of the primary advantages of investing in a property near an Israeli university is the security of rental income. Student housing is always in demand, with near-zero vacancy rates, ensuring a steady stream of tenants year-round. Unlike other rental markets that fluctuate with economic conditions, student accommodations remain a stable investment. This is especially true in cities
like Be’er Sheva (Ben-Gurion University), Haifa (Technion & Haifa University), and Jerusalem (Hebrew University), where students consistently seek affordable housing near campus.
For example, Be’er Sheva, home to Ben-Gurion University, has seen its student population exceed 20,000 since 2009, with ongoing growth and plans for a new North Campus. This expansion ensures a steady demand for rentals. Investors in Be’er Sheva can expect rental yields of approximately 3.9% for a 3-room apartment, highlighting the area’s investment potential.
3. Lower Price points – Affordable Investment Options Outside Gush Dan
A fascinating phenomenon in Israel’s real estate market is that peripheral cities with major universities still tend to be significantly more affordable than the high-priced Gush Dan region (Tel Aviv and its surrounding areas). Be’er Sheva, for example, offers very attractive property prices compared to Tel Aviv, despite being home to one of Israel’s leading universities. Haifa follows a similar pattern, boasting reasonable property prices even though the Technion (an internationally acclaimed academy in its field ) and Haifa University attract thousands of students annually. So if North Tel Aviv (near the university ) , or Herzliya (near the IDC) are too expensive for some, there are multiple other options to consider !
Some Interesting figures: In Q1 2024, the average price of owner-occupied dwellings in Be’er Sheva was ILS 1,234,200 (approximately $332,073), making it the most affordable among Israel’s major cities. In contrast, Tel Aviv’s average was ILS 4,141,600 (about $1,114,338), and Herzliya’s was ILS 3,774,300 (around $1,015,513). This significant price difference makes cities like Be’er Sheva and Haifa attractive options for investors seeking affordable properties with strong rental demand.
4. Triple Benefits: A Smart Investment Strategy
Purchasing an apartment near an Israeli university is not just a real estate investment—it’s a strategic move that actually achieves three key financial and practical goals:
a) Securing Housing for Your Child – If your child plans to study in Israel, owning an apartment ensures they have a stable and cost-effective place to live. Rather than paying rent for several years, you build equity in an asset while providing them with comfortable accommodations.
b) Generating Rental Income – Student apartments typically have multiple bedrooms. By renting out the additional rooms to other students, investors can generate rental income that offsets a significant portion of the local mortgage. In many cases, the rental income can cover most, if not all, of the monthly mortgage payments, making this a super-attractive investment.
c) Capital Appreciation – Israel’s real estate market has shown strong long-term growth, and properties in university hubs are no exception. As demand continues to rise, property values in these areas will undoubtedly appreciate, providing a solid return on investment when the time comes to sell.
5. Conclusion: A Winning Investment Strategy for the right Buyer
Investing in property near an Israeli university offers a rare combination of stability, affordability, and long-term profitability. With the growing number of Jewish students choosing to study in Israel, the demand for student housing is stronger than ever. By securing an apartment in these high-demand areas, investors can provide housing for their children, generate consistent rental income, and benefit from future property appreciation. In an uncertain global landscape, this investment opportunity stands out as a secure and financially sound decision.
