City in decline: No buyers for Kiryat Shmona apartments, in existential peril

Amid ongoing uncertainty and persistent security threats, Kiryat Shmona languishes as an abandoned enclave. Since the onset of the conflict, real estate transactions in the city have plummeted by 94.77% compared to the same period last year. This stark decline reflects a widespread reluctance to inhabit the area.

Exclusive data obtained by Walla Real Estate via Madlan reveals a mere 14 transactions in the city from October 7 to April 2024, all on the resale market, starkly contrasting with the 268 transactions during the corresponding period the previous year.

Who still buys an apartment in Kiryat Shmona?

Located just 3 km. from the Lebanese border, Kiryat Shmona was evacuated on October 20, 2023, less than two weeks into the conflict. Remarkably, three days post-evacuation, the city recorded its first transaction: the sale of a second-hand 3-room apartment spanning 64 square meters, fetching NIS 480,000. Notably, this transaction marked the lowest-priced deal since the war's outbreak.

Conversely, the highest-priced transaction occurred on November 2, involving a relatively new 3-room apartment (built in 2021) spanning 79 square meters, which sold for NIS 1.19 million. Situated in the new Yuval neighborhood on the city's northeast side, reports suggest it was an investment property under negotiation prior to the conflict.

"Officially, Kiryat Shmona is currently in a state of stagnation"

Tal Kopel, CEO of Madlan, elucidates the grim statistics: "Kiryat Shmona was previously favored by investors due to its low purchase prices and high rental yields compared to other cities. However, the city is currently at a standstill, marred by extensive property damage, infrastructure woes, and profound uncertainty about its future.

"With residents dispersed across the country, many may opt not to return even if conditions improve," Kopel said. "While speculative investors may eye the city as a potential resurgence opportunity, the scarcity of transactions underscores its high-risk status in the market."