Rental Yield in Tel Aviv by Neighborhood
Tel Aviv-Yafo is a low-yield, capital-appreciation market. Across 1,529 tracked rental listings, the gross rental yield is about 2.77% as of July 2026 — a median asking rent near 126.7 ₪/sqm per month against a 54,945 ₪/sqm asking sale price. This is gross, before arnona, building fees, insurance, vacancy, and tax; the net yield a landlord keeps is lower.
What gross rental yield measures — and what it doesn’t
Gross rental yield is the annual rent an apartment earns as a percentage of its price. We compute it per square metre: median asking rent per sqm per month × 12, divided by median asking sale price per sqm. Working per metre matters because our rent listings and our sale listings are different apartments — a per-metre basis removes any size-mix difference between the two panels. It is a gross figure: it does not subtract arnona (municipal tax), va’ad bayit (building-committee fees), management, home insurance, vacancy, or Israeli rental income tax, so a landlord’s net return is lower again. Both sides are current asking snapshots of tracked listings — not signed leases or registered sales — so treat the number as an indicative comparison across neighborhoods, not a take-home return.
Israeli rental income tax is the largest single deduction we can put a number on, and it is the one most often assumed away: the monthly exemption most guides quote is already exceeded by the median asking rent in every neighborhood on this page. See tax on rental income in Israel for the three tracks an owner can elect and what each one does to the figures above.
The Tel Aviv rental-yield number, July 2026
Citywide, tracked Tel Aviv-Yafo apartments asked a median of 126.7 ₪ per square metre per month in rent (n = 1,529 rental listings) against a median asking sale price of 54,945 ₪ per square metre (n = 1,037 active sale listings). That works out to a gross yield of 2.77% — the median tracked rental asks roughly 10,500 ₪ per month. A yield near 2.77% sits well below higher-cash-flow markets abroad: Tel Aviv buyers have historically paid for price appreciation and currency exposure, not rental income.
Gross rental yield by Tel Aviv neighborhood
We publish a per-neighborhood gross yield only where both the rent side and the sale side have at least 20 tracked listings — the same n ≥ 20 gate used across The Tel Aviv Property Report Index. As of July 2026, 9 of the 11 neighborhoods we track on the sale side clear that gate, and gross yields among them range from 2.44% to 3.05% — a spread of just 0.61 percentage points. That tight band is the finding: across very different Tel Aviv neighborhoods, rents and sale prices per square metre move close to proportionally, so there is no high-yield corner of the city to rotate into. Bavli tops the table at 3.05% and New North sits at the bottom on 2.44%.
| Neighborhood | Gross yield | Rent ₪/sqm/mo | Sale ₪/sqm | n (rent) |
|---|---|---|---|---|
| Bavli (בבלי) | 3.05% | 137 | 54,000 | 96 |
| City Center (לב העיר) | 2.96% | 141 | 57,321 | 142 |
| Florentin (פלורנטין) | 2.86% | 121 | 50,568 | 132 |
| Old North (הצפון הישן) | 2.84% | 130 | 55,000 | 337 |
| American-German Colony / Sarona (המושבה האמריקאית-גרמנית\שרונה) | 2.83% | 124 | 52,632 | 163 |
| Kerem HaTeimanim (כרם התימנים) | 2.6% | 157 | 72,605 | 89 |
| Neve Tzedek (נווה צדק) | 2.57% | 160 | 74,658 | 88 |
| Ramat Aviv (רמת אביב) | 2.51% | 103 | 49,148 | 37 |
| New North (הצפון החדש) | 2.44% | 120 | 58,943 | 336 |
| Tel Aviv-Yafo citywide | 2.77% | 127 | 54,945 | 1,529 |
Gross yield = (median asking rent ₪/sqm/month × 12) ÷ median asking sale ₪/sqm. Both sides are current asking snapshots of tracked listings, July 2026; the rent and sale panels are different apartments.
Why Tel Aviv yields look low
A gross yield near 2.77% is structural, not a data quirk. Sale prices in Tel Aviv-Yafo have been bid up by scarce land, strong demand, and buyers treating apartments as a store of value and a currency hedge — pushing prices per square metre up faster than rents. Rents have not kept pace, and a tenant’s budget is capped by local salaries in a way a buyer’s is not. The three priciest neighborhoods per square metre — Neve Tzedek, Kerem HaTeimanim, New North — return gross yields of 2.57%, 2.6%, 2.44% respectively: paying the most per metre does not buy more rent per metre in proportion. For how asking prices compare with registered sale prices, see the asking-vs-closed spread; for the price-per-metre league table, see price per square metre by neighborhood.
Methodology and coverage
Rent side: 1,529 tracked Tel Aviv-Yafo rental listings from a classifieds snapshot (snapshot July 2026), PII-stripped, with each listing’s rent per square metre kept only within a sane band to drop obvious data errors and non-residential noise. Sale side: median asking price per square metre from our tracked active sale listings (citywide n = 1,037). We publish a per-neighborhood yield only where both sides reach n ≥ 20; hoods below that gate are suppressed, never zeroed. Of the 11 neighborhoods we track on the sale side, 9 clear the gate this month, Ramat HaHayal (rent n = 18) falls short on the rent side, and Jaffa / Noga has no rent panel we can map cleanly to that neighborhood. Where the listing source splits a large neighborhood into sub-hoods (City Center, Old North, American-German Colony / Sarona, New North), the rent side is the union of those sub-hoods: the two panels carry the same neighborhood name but not a guaranteed-identical boundary. The metric is gross, asking-based, and computed per square metre across two different listing panels — indicative, not a paired same-unit or achieved-rent comparison. The full pipeline is documented on our methodology page.
Frequently asked questions
What is the average rental yield in Tel Aviv?
Across 1,529 tracked Tel Aviv-Yafo rental listings, the gross rental yield is about 2.77% as of July 2026 — a median asking rent of roughly 126.7 ₪ per square metre per month against a median asking sale price of 54,945 ₪ per square metre. This is a gross figure: it excludes arnona, building fees, insurance, vacancy, and income tax, so the net yield a landlord keeps is lower.
How is gross rental yield calculated here?
Gross rental yield = (median asking rent per square metre per month × 12) ÷ (median asking sale price per square metre) × 100. We work per square metre because the rent listings and the sale listings are different apartments, so a per-metre basis removes any size-mix difference between the two panels. Every figure states its sample size (n).
Which Tel Aviv neighborhoods have the highest rental yield?
Among the 9 neighborhoods where both the rent and sale samples reach n ≥ 20, Bavli shows the highest gross yield at 3.05% and New North the lowest at 2.44%, as of July 2026. Prime central neighborhoods tend to show lower gross yields because sale prices per square metre are bid up faster than rents.
Is a 2–3% gross yield good for Tel Aviv?
Tel Aviv is a low-yield, capital-appreciation market: gross yields cluster around 2.77% (July 2026), well below higher-yield European or Gulf cities. Investors here have historically bought for price growth and currency exposure rather than cash flow. A net yield after arnona, building fees, insurance, vacancy, and tax is materially lower again.
Does this yield account for taxes and running costs?
No — this is a gross yield. It does not subtract arnona (municipal tax), va'ad bayit (building committee fees), management, insurance, vacancy periods, or Israeli rental income tax. A realistic net yield is lower; treat the gross figure as a comparison tool across neighborhoods, not a take-home return.
How reliable is this rental-yield data?
Both sides are current asking snapshots of tracked listings, not signed leases or registered sales, and they are different apartments joined per square metre. We publish a neighborhood only where both the rent side and the sale side reach n ≥ 20 (9 clear that gate this month), and per-listing rent/sqm outside a sane band is dropped as a data error. It is indicative, not a paired same-unit comparison.
Where this fits in the market data
Rental yield joins our rent and sale panels into one investor-facing metric. For the rent side on its own — median asking rent by neighborhood and by room count — see Tel Aviv rent prices. For the sale side on its own, see Tel Aviv property prices and price per square metre by neighborhood; for how long homes stay listed, see days on market. Read from the tenant’s side rather than the investor’s, the same number answers a different question — whether a new arrival should rent before buying: see rent first or buy after aliyah. That same gross yield, set against local salaries, also answers whether buying makes sense at all — see is Tel Aviv worth buying. Every figure across the market data hub, as here, states its sample size (n) and month.
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