Blog Post | Korenfld Real Estate Suite

Looking at investment property in Eilat? In short: rent data published since 2025 shows no single trend. Sources showed rises, stability and declines, by size, period and method. What matters is the likely tenant, permitted use and the numbers after costs, not a headline percentage.

Korenfld Properties – since 1991, two generations of experience and familiarity with Eilat’s real-estate market. Below: the data, why figures differ, what to check by area, and how to calculate rental yield.

Note: General information only, not investment, legal, planning or tax advice. Figures are as published, for their stated periods, and may not reflect today’s market.

In this guide:

Eilat rental market data
Why the numbers aren’t the whole story
What to check by area
Long-term vs. vacation rental
Rental yield, cash flow and cash-on-cash return
Before buying property in Eilat
Common mistakes
FAQ
Sources

Eilat Rental Market: What Was Published and When

Eilat only; annual change as reported by each source. No source stated whether its figures reflect asking rents or signed leases, so we note what is known about each.

Period	Eilat figure as published (₪/month)	What was measured	Source
Feb 2025	2 rooms: 3,620, up 19% 3 rooms: 4,759, up 12% 4 rooms: 5,482, up 9% 5 rooms: 8,833, down 4%	Average; method not stated	Differnt, via Ice (16 Mar 2025)
Jul 2025	2 rooms: 4,306, up 3% 3 rooms: 4,561, up 6% 4 rooms: 5,318, down 7% 5 rooms: 6,433, up 2%	Average; “rented”, undefined	Differnt, via Maariv (18 Aug 2025)
Jan 2026	4 rooms: up about 15% (Eilat average not published)	Yad2 listings; asking rents not stated	Yad2, via ynet (17 Feb 2026)
Q2 2026 (Apr–Jun)	3 rooms: 3,800 4 rooms: 5,100 5 rooms: 7,000 All: 4,100 (national: 5,125)	Quarterly median per site chart; method not stated	Gov. real-estate site (viewed 28 Oct 2026)

Israeli “rooms” include the living room (3 rooms ≈ 2 bedrooms). The latest Eilat figure we found runs to June 2026; we found no documented city data after that.

2025: Per the articles, February’s rises were tied mainly to evacuees; by July, after they left, the market again served mainly summer tourists.
January 2026: Per Yad2, Eilat led the 4-room annual rise and city supply fell about 15.3% (unclear if 4 rooms only).
Q2 2026: The government site shows a median, not an average, so it isn’t directly comparable with Differnt. Eilat’s all-apartments median was about ₪4,100, vs. about ₪5,125 nationally.

How can 4-room rents be up 9%, down 7% and up 15%?

Different base period. Each compares a month with the same month a year earlier; if base-year rents were unusually high (e.g. the evacuee period), a stable market can look like a decline.
Supply shifted. 4-room supply rose in July 2025; city supply fell in January 2026.
Different methods. Some sources show averages, others medians. A quarterly median resists outliers: the government site’s 4-room median was about ₪5,100 in Q2 2026 vs. about ₪4,800 in Q2 2025.

So re-check expected rent at purchase, by size, area and condition.

Why the Numbers Aren’t the Whole Story

Asking rent vs. signed lease. A listing price opens negotiation; tenants may pay less.
New tenants vs. renewals (national). Per Israel’s Central Bureau of Statistics (CBS), in September 2026 new-tenant rents rose about 5.3% year on year and renewals about 2.4%. Though national, it shows averages from re-listed units may exceed what sitting tenants pay.
District data is not city data. CBS Q1 2026 figures published by ynet cover the Southern District (average about ₪3,632), not Eilat specifically.
Small samples. Maariv cited supply of just 71 two-room, 47 three-room, 31 four-room and 14 five-room apartments; a few outliers can shift such averages noticeably.
Seasonality and one-offs. Eilat is a tourist city; per the articles, 2025 figures reflected evacuees’ arrival and departure, not long-term trends.

Eilat Real Estate Investment: What to Check by Area

With no documented neighborhood yield data, we don’t rank areas by “yield”. Instead ask: who is the likely tenant, what is the building’s condition, what use is permitted, and who could buy it later?

Area	Possible fit	What to check	Risk or opportunity
Shahamon	Long-term family rental; per the area page, 3–5 room and garden apartments, houses	Mamad (reinforced safe room), parking, nearby schools, building condition	Entry price drives yield; high rent ≠ high yield
Ofir, Arava and HaDekel	Long-term rental in older buildings	Building age and systems, mamad or shelter, Va’ad Bayit (building committee and fees), renewal status	Renewal may be an opportunity, but demolish-and-rebuild halts income during works
City Center	Small apartments for singles and couples	Noise, nearby commerce, upkeep, tenant turnover	Turnover may add vacant months and refresh costs
Marina & Hotels	Vacation rental, only where permitted	Permitted use, complex rules, management and upkeep	Seasonal, volatile income; consider resale buyers
Tzalim (West)	Mixed property types and uses; not all suited to vacation rental	Property type, permitted use, likely tenants (residents or vacationers), building condition	Fit varies by property; vacation rental only where permitted

Safe rooms and building condition

A “Yom Yom Eilat” article (19 Jun 2026), based on listings and local agents, described gaps between apartments with a mamad and older buildings without an internal shelter, citing older units rented for less than a year earlier.

This is a qualitative indication only, not a representative sample or proof of a consistent price gap. Still, safe-room access and building condition belong in your analysis, alongside location.

Urban renewal: what is known and what isn’t

The Eilat Municipality’s urban-renewal page (12 Aug 2024) suggests three levels:

General policy: A strategic renewal plan, per the page approved by the District Committee. It sets tools and principles, not the fate of a specific building.
Compounds being advanced: Selected compounds in Ye’elim, HaDekel and Arava are to get state funding via the municipal track; in HaDekel, the Barnea compound (16 buildings, 137 units) held a public-participation meeting. For Ofir, a similar track is “planned”.
Projects under way: Two TAMA 38 buildings (one finishing, one under way) and about 17 private-developer projects.

This is the August 2024 picture; current status is unverified. Timelines are uncertain, and in demolish-and-rebuild projects the apartment earns no rental income during construction. Check the building with the municipality and a lawyer, and make sure the deal works without renewal. Overview: Eilat neighborhoods and areas.

Long-Term Rental vs. Vacation Rental

Long-term rental (leases of a year or more) needs less hands-on management and gives more predictable income, but depends on local residents’ demand.

Vacation rental may earn more at times, but is seasonal and volatile, with cleaning, upkeep, furnishing, marketing and management costs; after vacant periods, its edge may be smaller than it looks.

Key point: vacation rental is possible only where the use is permitted. Confirm it before buying (plan, permits, local rules, building bylaws) with a lawyer or planner. Background: Everything you wanted to know about holiday apartments in Eilat.

Rental Yield in Eilat: Gross Yield, Cash Flow and Cash-on-Cash Return

High rent alone isn’t a good investment. Keep four measures separate:

Gross yield (property level, ignores financing):
annual rent ÷ purchase price × 100
Operating yield, before tax and financing:
(annual rent − operating expenses) ÷ total investment cost × 100
Cash flow after mortgage, what is left each year:
annual operating income − annual mortgage payments (principal and interest)
It can be negative, meaning you top up monthly.
Cash-on-Cash Return, yearly cash left relative to the cash you put in:
annual cash flow after mortgage ÷ total cash invested × 100
Cash invested = down payment plus cash costs, incl. purchase tax. Not total return on equity, which also reflects principal repayment, value changes and other liabilities.

Leverage doesn’t change gross or operating yield. It affects cash flow (through mortgage payments) and cash-on-cash return (through a smaller cash investment); depending on rate and terms, it may raise or lower equity returns.

Costs to include:

At purchase: Mas Rechisha (purchase tax), per the brackets at purchase (differs for a single vs. additional home); lawyer; brokerage; appraisal or inspection; renovation and furnishing; financing costs if mortgaged.
Operating expenses: maintenance and repairs; insurance; management; vacancies, when Arnona (municipal property tax) and Va’ad Bayit fees fall on the owner.
Separately: mortgage payments, and tax on rental income under the relevant track.

Israeli real-estate taxes vary by buyer status (e.g. residency, other properties held) and deal terms; check with a lawyer or tax advisor.

Numerical example

For illustration only: not a real deal or specific apartment, and not a guaranteed or expected yield. Rounded figures. It excludes purchase tax, tax on rental income and financing, so it is not a final return.

Item	Illustrative amount (₪)
Purchase price	1,500,000
Lawyer, brokerage, checks (assumed)	45,000
Light renovation, basic furnishing (assumed)	55,000
Illustrative investment cost, excl. purchase tax	1,600,000
Full annual rent (5,000/month, assumed)	60,000
One vacant month	−5,000
Maintenance and repairs (assumed)	−4,000
Insurance (assumed)	−1,500
Property management (assumed)	−5,500
Annual operating income (pre-tax, pre-financing)	44,000

Gross yield:
60,000 ÷ 1,500,000 × 100 = 4.0%

Operating yield (pre-tax, pre-financing):
(60,000 − 16,000) ÷ 1,600,000 × 100 = 2.75%

Same apartment, three vacant months:
(60,000 − 26,000) ÷ 1,600,000 × 100 ≈ 2.1%

The 4.0% → 2.75% gap is operating expenses alone. Purchase tax raises the cost base; rental-income tax cuts net income; mortgage payments affect cash flow, and their effect on equity returns depends on loan terms. Value changes are excluded.

This is property-level yield only. In this illustration only, for an all-cash purchase, before tax and on the same ₪1,600,000 base, cash-on-cash equals the 2.75% operating yield. With a mortgage, cash flow and cash-on-cash depend on loan size, rate and term; use a real financing offer.

Planning to buy investment property in Eilat?
We’ll review options by budget and goal: suitable apartment types and areas, the likely tenant, and the numbers.
Book an introductory investor call

Buying Property in Eilat: Pre-Purchase Checklist

Goal and strategy: income, long-term hold, partial personal use, or a mix.
Tenant profile: who would rent this apartment, and what they want.
Realistic rent: comparables in the same area and condition, not a citywide average.
Permitted use: planning and legal check, especially for vacation rental.
The building: structure, systems, mamad, Va’ad Bayit, renewal-plan status.
Title and Ownership Verification: rights may be recorded at the Tabu (land registry), the Israel Land Authority (RMI) or a developer’s registering company. Have a lawyer verify owner, mortgages, cautionary notes and restrictions before signing.
Budget and financing: purchase tax, extra costs, renovation, and mortgage payment vs. rent.
Management: who handles tenants, repairs and collection if you live elsewhere.

Browse our Eilat properties.

How Korenfld Properties Supports Investors

A family business in Eilat since 1991, we handle brokerage, property management, mortgage advice and insurance, supporting investors, including those abroad, from search and numbers to financing and management. We don’t replace a lawyer, appraiser or tax advisor, or guarantee returns. See our services.

Common Investor Mistakes

Headline decisions: one month from one source isn’t today’s market.
Gross-only math: ignoring costs, vacancies, taxes and mortgage.
Assuming vacation use: without checking permitted use.
Renewal as certainty: paying for uncertain potential.
No safety cushion: no room for repairs, vacancies or lower rent.

FAQ

How much does it cost to rent an apartment in Eilat?

Per the government site, the Q2 2026 median was about ₪3,800 for 3 rooms and ₪5,100 for 4 rooms. These are past figures; check comparables for a specific apartment.

What is the rental yield on investment property in Eilat?

No single number; we found no documented neighborhood yields. Calculate per apartment, keeping the four measures apart. Total return on equity also counts debt reduction and value change.

Is the 9% rent increase figure still relevant?

It is Differnt’s 4-room figure, February 2025 vs. February 2024. Other figures have appeared since; it doesn’t describe October 2026.

Is this a good time to buy investment property in Eilat?

We don’t claim to time the market. Base the decision on your goal, conservative numbers and professional checks.

I don’t live in Eilat. Can I buy and rent out remotely?

Yes, but decide upfront who handles tenants and repairs. We offer property management.

Exploring investment property in Eilat?
In an introductory call we’ll review your budget, goal and suitable areas, and build a checklist. The decision remains yours.
Talk to Korenfld Properties

Investment Property in Eilat: What Rental Data Shows and How to Calculate Yield