While Israel’s real estate market overall cooled in 2024 due to soaring interest rates, labor shortages, and inflation, an unexpected boom has taken place in the country’s south. Cities such as Beersheba, Dimona, and Yeruham have experienced sharp increases in home values and renewed investor interest, both from within Israel and abroad.
According to data from the real estate platform Madlan, home prices in Beersheba rose by more than 15% last year, while Dimona saw an even more dramatic increase of nearly 19%.
These jumps are especially significant considering that nationwide, new housing starts dropped significantly in the wake of the October 7 war and economic uncertainty.
Real estate entrepreneur Ester Ben David, who specializes in guiding investors toward opportunities in Israel’s southern region, said the combination of relatively low property prices and high demand is drawing buyers. “Despite recent price hikes, properties in the South are still far more affordable than those in central Israel,” she said.
“We’re seeing serious interest from investors and families alike who are looking to combine strong returns with national purpose.”
For many Israelis, investing in the South is not only a financial decision but also a statement of values. The Negev and southern periphery—long the focus of David Ben-Gurion’s vision for national development—are being revitalized through a mix of government incentives and grassroots energy.
“The South is becoming the most desirable destination for investment in the country,” Ben David said. “There’s a new awareness that this is where the next chapter of Israeli growth is unfolding.”
Building despite the trauma
Government-backed development projects are playing a key role in the region’s transformation. New transportation infrastructure—including upgraded rail and highway links to Tel Aviv and Jerusalem—has made these cities more accessible. Signed agreements with the Israel Land Authority are paving the way for thousands of new housing units, as well as upgraded commercial centers and public services.
Even amid the current ceasefire with Hamas, security remains a concern in the region. Yet that reality has not deterred investment. “We are seeing many Israelis who had left the country returning—not just for emotional reasons, but because they believe in rebuilding the South,” Ben David said. “There’s a sense of resilience here, of choosing to build despite the trauma.”
She added that interest is not limited to Israelis. “We’ve received inquiries from Diaspora Jews, especially in North America, who want to feel they are part of Israel’s recovery—not just through donations, but through tangible investment.”
Neighborhoods in Beersheba such as Neve Ze’ev and Ramot B have shown equity returns of between 19% and 22% over the past three years, according to Madlan. These figures are helping to rebrand the South not only as a frontier, but as a frontier of opportunity.
“For those who remember the old image of the Negev as empty desert or distant development towns, that’s no longer the case,” Ben David said. “This region is dynamic, growing and full of promise. Investing here today means being part of something bigger—economically and historically.”
Ben David described this trend as “a form of modern-day aliyah for your portfolio.”
