Eilat is a small tourist town located on the shores of the Red Sea, with a population of about 50,000 people. Thousands of guests from around the world and Israel come to Eilat throughout the year. The international airport that opened this year, just a 20-minute drive from the city center, has made Eilat even more accessible for visitors and attractive for investors. In this warm and sunny city, there are all the necessary amenities for both permanent living and vacationing: beaches, parks, educational institutions for all ages, quality medical services, numerous shopping centers, chain supermarkets, 24-hour stores, restaurants, sports and entertainment centers, and much more. Additionally, this city is one of the cleanest environmentally, as there are no factories or plants here.
Profitable Real Estate Investments in Eilat
Among real estate investors in Eilat, there is the highest demand for apartments with two to four rooms, their prices range from 500,000 to 2,000,000 shekels, depending on the area, age of construction, and size of the apartment. The rental income from these apartments can yield a good and stable income starting from 3,000 shekels per month and above. There is always demand for rental housing, both from the local population (young families, new immigrants, students) and from individuals coming to work in Eilat. Many are also looking to rent apartments short-term due to high hotel prices. Short-term rentals can yield you 50% to 200% more profit than long-term rentals. Rental prices fluctuate depending on the season. For example, short-term renting a large luxury apartment or villa in a prestigious area can generate income of 30,000 shekels a month.
Advantages of Investing in Eilat Real Estate
Eilat is rapidly developing; the area of new residential neighborhoods is expanding, with hundreds of new housing units and dozens of commercial centers being commissioned annually. Investing in Eilat Real Estate is undoubtedly a lucrative investment, as prices and demand for properties rise year after year. For example, a three-room apartment purchased in 2013 for 380,000 shekels was sold at the end of 2014 for 470,000 shekels. In the new prestigious Shachamon area, prices are rising even faster. For instance, a 5-room apartment bought directly from the developer in 2009 for 1.1 million shekels was sold in 2015 for 1.5 million shekels. The number of people wanting to live permanently or simply vacation in Eilat continues to grow each year. It is also significant that all services and goods in Eilat are exempt from VAT, making the maintenance of an apartment much cheaper than in other cities in Israel.
