Beit Shemesh (Old City and Givat Sharett).
The Honest Guide from the Tel Aviv Property Index
Old Beit Shemesh and Givat Sharett are among the cheapest places to buy within reach of both Jerusalem and Tel Aviv, and they are on the cusp of a large wave of urban renewal. What the reputation leaves out is how much the city around them is changing, and how long renewal takes to arrive.
Where it is
Beit Shemesh lies in the Judean foothills, roughly 30 km west of Jerusalem and about 50 km south-east of Tel Aviv. Route 38 runs north–south through the city and links to Route 1 at the Shimshon junction.
The old city centre is the original town, around the train station and the main commercial streets. Givat Sharett rises on the hill to the south-west, looking across the valley.
The city's other half, Ramat Beit Shemesh (RBS), lies further south. It is covered in our separate guides to RBS Aleph, RBS Gimmel, Sheinfeld and Neve Shamir.
From development town to divided city
Beit Shemesh was founded in 1950 as a development town. Its early residents were largely immigrants from North Africa, later joined by arrivals from the former Soviet Union and Ethiopia.
From the 1990s the city grew dramatically. Most of that growth came in RBS, which filled largely with Haredi families alongside national-religious and Anglo communities.
That growth changed the city's politics. Since March 2024 the mayor has been Shmuel Greenberg of Degel HaTorah, the first Haredi mayor in several years.
What it is actually like today
The old city centre is plain, busy and unpretentious. Housing is mostly four-storey 1950s–1970s blocks, many without lifts or safe rooms. Shops, markets and services are close at hand, and the train station is within reach.
The centre is where the first renewal is physically happening. In May 2025 two buildings were demolished in the Ramat Lehi pinui-binui scheme. It replaces 176 old flats with roughly 1,195 new ones in three phases, with a new school, kindergartens and a neighbourhood centre.
Givat Sharett is quieter and greener, a hillside of older blocks, terraced housing and some private homes. It has long been one of the city's secular, traditional and national-religious strongholds.
The mood in both areas is ordinary Israeli: mixed, working and middle class, and not especially polished. That is part of the appeal for some buyers and a turn-off for others.
The big issue: renewal in Givat Sharett
Givat Sharett is about to change shape. A pinui-binui plan covering around 150–160 dunams, around HaRakefet and HaNarkis streets, would replace about 486 older flats with more than 3,000 new homes.
The design includes 14 towers of up to 35 storeys, 28 lower buildings, and large areas of parks and public buildings. Reports say 84% of owners signed before the plan advanced.
The district committee decided to deposit the plan in July 2025. By December 2025, press coverage described it as approved, with Phase A expected within about 18 months, according to a lawyer representing residents. Treat that timetable as an aspiration, not a promise.
For owners inside the scheme, this is potentially a large uplift. For owners around it, it means years of construction traffic, noise and a very different skyline.
The city also offers developers an exemption from betterment levy on renewal projects, reported as valid until April 2027. That is one reason activity has accelerated.
The other big issue: a changing city
Beit Shemesh as a whole now has a large Haredi majority, and much of its new building is aimed at Haredi families. Givat Sharett and the old centre remain more mixed, but they sit inside that wider trend.
In early 2025, a privately promoted plan for a "central quarter" of about 12,800 homes emerged on land between Givat Sharett and RBS. Press reports described it as aimed at the Haredi market. The municipality asked the district committee to postpone its first hearing, saying the plan needed deeper review.
The Givat Sharett renewal scheme has been presented by some commentators as a way to keep the neighbourhood diverse. Others quoted in the same coverage doubted it would hold back the city's direction. Both views are honestly held, and nobody can yet say which is right.
The practical point for buyers: think about who your neighbours will be in ten years, not only today. Schools, shuls and shops follow population, and the balance can move one building at a time.
Who lives here
The old centre houses long-established families, many of North African, Russian-speaking or Ethiopian origin, plus younger buyers priced out elsewhere. It is largely traditional in character.
Givat Sharett is more secular and national-religious, with some English speakers. The Anglo community here is real but much smaller than in RBS Aleph, and it is more likely to be modern Orthodox or traditional than Haredi.
Most Anglo religious infrastructure in Beit Shemesh – English-speaking shuls, schools and services – is concentrated in RBS. Families in Givat Sharett often drive there for community life.
Prices and what you get
These two neighbourhoods are below the city median, which is itself low for central Israel.
| Neighbourhood | Median price | ₪/m² | Registered deals |
|---|---|---|---|
| Old city centre | ₪1,700,000 | ₪25,455 | 394 |
| Givat Sharett | ₪2,000,000 | ₪25,391 | 141 |
| Beit Shemesh (all) | ₪2,230,000 | ₪24,061 | 4,256 |
Registered sales, Jan 2023 – Aug 2026
The source we use did not break out individual recent deals for these two neighbourhoods, so we do not quote any. The medians imply a typical old-centre flat of roughly 67 m² and a typical Givat Sharett flat of roughly 79 m².
Note that the per-metre prices here are slightly higher than the city average, despite lower totals. That reflects smaller units, not premium housing.
What the money buys. Around ₪1.7 million buys a three-room walk-up in the old centre. Around ₪2 million buys a three- to four-room flat in Givat Sharett, often dated and without a safe room.
Purchase tax at the Givat Sharett median (₪2,000,000). A single-home buyer pays about ₪744. An oleh under Reg 12A pays about ₪106. A foreign resident or additional-home buyer pays ₪160,000.
At the old-centre median of ₪1,700,000, a single-home buyer or oleh pays nothing. A foreign or additional-home buyer pays ₪136,000.
The honest risk. You are buying ageing stock whose value depends heavily on renewal. If the scheme slips, or your building is outside it, you own an old flat in a changing city.
Buying here: what to check before you sign
Is the building inside a renewal plan?Check the approved or deposited plan at the local planning committee, not the agent's map. Confirm which phase your building falls in and when evacuation is expected.
The developer agreement.If the building has signed, obtain the agreement with the developer. Check the replacement flat, guarantees, rental during construction and completion dates. The Evacuation and Construction (Compensation) Law 5766-2006 governs refusing owners.
TAMA 38 is gone.Since 18.5.2026, TAMA 38 applies only where a valid permit exists. Any seller claiming a strengthening deal must show that permit, or the project must be under the Shaked Alternative or pinui-binui.
Tax in a renewal context.Ask how purchase tax and betterment tax will apply when you receive the new flat. The Real Estate Taxation Law has specific renewal exemptions, but they depend on your facts.
Off-plan security.If you buy new in the old centre, every payment above 7% must be secured under s.2 of the Sale (Apartments) (Assurance of Investments) Law 5735-1974. Delay compensation runs under s.5A of the Sale (Apartments) Law 5733-1973, on the post-Amendment 9 ladder for contracts from 7.7.2022.
Financing older stock.Directive 329 caps LTV at 75% for a single dwelling, 70% for a replacement and 50% for an additional home. Some banks lend less on very old buildings; the 50% quoted to non-residents is bank policy, not law.
Community fit.Visit on a Shabbat and on a weekday evening. Talk to neighbours in your actual building about how the street has changed in five years.
Who it suits
Beit Shemesh old city and Givat Sharett work well for:
- Buyers on a budget who want to stay within reach of Jerusalem and Tel Aviv
- Investors comfortable with a five-to-ten-year renewal horizon
- Secular, traditional or national-religious families who want a mixed neighbourhood
- Households who want to be near the train station
It is harder to recommend for:
- Anyone who needs a modern flat with a lift and safe room now
- Families wanting a large Anglo community on their doorstep
- Buyers who cannot tolerate years of nearby construction
- Anyone uneasy about the city's demographic direction
The verdict
These are some of the best-value neighbourhoods in central Israel, and renewal gives them genuine upside. The old centre is already being rebuilt, and Givat Sharett has one of the largest schemes in the city's history.
But the upside comes with a long timetable and a city in flux. Buyers need to price in construction, delay and a population that may look quite different by the time the towers are finished.
Buy here for the value and the renewal, with clear eyes about the time and the change.
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