Since the launch of the extension segment of the light rail’s red line from Kiryat HaYovel to Hadassah Ein Kerem Hospital in early March 2025, movement can already be seen in the Jerusalem real estate market. Field reports are unambiguous: the Kiryat Menachem neighborhood, once considered on the city’s periphery, is beginning to change its character, and the local real estate market is responding accordingly.
According to data from the Madlan website, in 2024, the average prices in the neighborhood stood at about NIS 29,000 per square meter for 3-room apartments, between NIS 26,000 and NIS 28,000 per square meter for 4-room apartments, and around NIS 28,000 per square meter for 5-room apartments. However, since the rail line began operating in March, a price increase of 5%–8% has been recorded, and this is likely just the beginning of an accelerated trend.
The Station That Upgrades Property Value
The impact of quality public transportation, and particularly light rail, on real estate values has been proven time and again, both in Israel and abroad. “The opening of the red line segment from Kiryat HaYovel to Hadassah Ein Kerem this year marks a milestone in urban transportation in Jerusalem,” says Ron Mazor, a certified real estate appraiser (MBA in Business Administration), and owner of the appraisal office Ron Mazor – Real Estate Appraisal and Management. “Both local and international experience show that the impact of transportation infrastructure in general, and light rail in particular, on property values, especially in proximity to a station, is very positive and leads to appreciation.”
Mazor cites studies in Israel and abroad showing that residential areas near a rail station enjoy price increases of 5%–17% above the general market rise. According to him, this pattern repeated itself in central Jerusalem when the red line began operating, and he expects further increases in the coming years: “The expectation is that, along with improved access to the city center and the hospital, and the upgrade of public spaces - all these will lead to moderate price increases in the short term, and eventually to even more significant appreciation along the extension route to Hadassah.”
“The price increases around red line stations were also clearly felt in the Tel Aviv metro area,” Mazor continues. “Based on examples from Tel Aviv, apartment prices jumped by hundreds of thousands of shekels after the line’s opening - especially in areas close to stations.”
According to him, the effect is not just temporary but continues over time: “In Kiryat Menachem, there is a particularly high potential for value appreciation. The line’s extension creates a unique opportunity for buyers and investors - as long as quality risk management is performed and the development phases are taken into account. As long as there is transportation certainty, the market responds accordingly.”
An Urban Renewal Revolution Ahead
One of the reasons the neighborhood is attracting growing interest is the advanced plans for urban renewal (Pinui-Binui). Many projects are currently being promoted in Kiryat Menachem, which are expected to double or even triple the supply of apartments. In addition to thousands of new housing units, the plans include essential additions to the neighborhood: dozens of classrooms, daycare centers, public buildings, community centers, and more.
Meanwhile, neighboring Kiryat HaYovel is also benefiting from a large-scale urban renewal push, within which hundreds of new apartments are expected to be built in 20- to 30-story towers. Together, the two areas form one of the city's most notable zones for property appreciation - especially given the support of the District Planning and Building Committee, which promotes dense construction along the light rail route and significantly reduces parking standards along the corridor.
Don’t Miss the Train
As Jerusalem continues to renew and grow, the extension of the light rail line to Hadassah Ein Kerem marks a deep shift in the city's demand map and not just in terms of transportation. The Kiryat Menachem neighborhood, once considered marginal in Jerusalem’s real estate market, is gradually becoming one of the most promising areas for investment.
The combination of convenient access to public transportation, extensive urban renewal plans, institutional planning support, and growth in community services creates fertile ground for price increases and property value enhancement.