Real Estate in Eilat - Buy and Rent in Israel

Eilat is Israel's southernmost city — and most atypical. Located at the northern tip of the Gulf of Aqaba, on the Red Sea coast, between Egypt (Taba) and Jordan (Aqaba), it lives to the rhythm of tourism, sunshine and a unique tax status: Eilat is a free zone, exempt from VAT. This status makes it a distinct real estate market, driven by short-term rentals and vacationers.

The climate is hot and dry all year round: over 35°C in summer, around 25°C in winter — Israel's hottest and sunniest days. The Red Sea waters, relatively cool (22-25°C) and exceptionally clear, harbor coral reefs and spectacular tropical fauna. The Coral World underwater observatory, coral reserve and Dolphin Reef make Eilat an internationally renowned diving destination.

Eilat has about 55,000 permanent residents, but its population is considerably increased by seasonal workers and tourists — Israeli and European — who flock there year-round, with peaks during school holidays and festivals. Direct flights from major European cities serve the new Ramon Airport (Ilan Ramon), inaugurated in 2019.

The real estate market in Eilat

The seafront and hotel district — hotels, tourist residences, apartments with sea views. This is the most expensive sector, oriented towards short-term rentals. High season yields are among the highest in Israel.

Downtown — shopping district with affordable apartments. Restaurants, duty-free shops, nightlife. Interesting rental investment for long-term rental to local workers.

Residential neighborhoods (Arava, Shahamon, Ofir) — quieter family neighborhoods, away from the tourist zone. Lowest prices in the city, more local profile.

For a 4-room apartment in Eilat, expect between 1,200,000 and 2,500,000 ₪. Gross rental yield can reach 4 to 7% through short-term rentals, but beware: occupancy rates vary greatly between high and low season. Short-term rentals are also subject to less favorable commercial taxation than long-term rentals.

Eilat is a seasonal investment market or a lifestyle choice for lovers of sunshine and the Red Sea. The absence of VAT, permanent climate and tourism create a unique environment in Israel.

To go further: consult our comparison of the best cities to invest in Israel or our complete guide to the purchasing process.