Can I Buy in Jerusalem In the Million Dollar Range?
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Can I Buy in Jerusalem In the Million Dollar Range?

(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)

Is it possible to buy real estate in Jerusalem for less than one million dollars?

The obvious answer to this question is yes, of course.

However, the more nuanced answer addresses the real question which should be what can I buy for one million dollars and in which neighborhoods can I buy what I want within my budget?

Most Anglos looking to buy in Jerusalem would like to buy a 3 bedroom, 2 bathroom apartment in good neighborhoods within walking distance to Shuls such as Nitzanim and the Shteiblech.

There are two neighborhoods that get close to these criteria while remaining within the budget of one million dollars and they are Mekor Chaim and Arnona. The other option to be in an even more central area is to drop a bedroom in your search.

To buy for a million dollars in Jerusalem either you have the money in cash and it will be including 12% closing costs which brings you to about 1.15 million dollars.

The other option is to borrow money based on the bank's evaluation of the property, where you can usually borrow around 50%, although each case is individual.

Mekor Chaim

Mekor Chaim is a street that runs from the end of Baka until the start of Talpiyot.

On the Talpiyot side, the city is in process of adding the green line, which is a new light rail line running up to the city center.

This light rail line will make it possible to travel from Mekor Chaim to the city center in about eight minutes. The walk from one side of Mekor Chaim to Baka and Nitzanim is about 15-20 minutes, and Hadar Mall, the big shopping center in the area, is only a 5-minute walk.

To buy a 3 bedroom apartment for around 1 million dollars in an area that is walking distance to everything you would need, plus Mekor Chaim has a growing community of Anglos within its new projects including Quadra, is definitely an attractive option.

There are many opportunities currently available in the area. 


Arnona is a gorgeous green residential area that is on the other side of Derech Chevron only a 5-7 minute walk from Baka.

In Arnona, you can purchase a 3-bedroom apartment for anything between 850,000-1,150,000 dollars. The more you spend, the more SQM you will get of course, but staying within budget is definitely achievable!

What I love about Arnona, besides the green residential feel, is how close it is to Baka without paying Baka real estate prices.

The Anglo community in Arnona is booming, and it is still walkable to Nitzanim if you really want to go, plus there is a great Shul called Shai Agnon in Arnona which is also a great option.

German Colony/Katamon/Baka

It is very difficult to buy in these areas for around a million dollars, the likely option would be to buy a two-bedroom unit of appx 800 SQFT.

Finding tick-all-box apartments can be a struggle, especially if you would like an apartment with a balcony, parking, and elevator.

You will not be able to find a three-bedroom apartment in these areas at that price point. If location is crucial, you would need to compromise on other factors such as parking and a balcony. 


If you have a budget of around 1 million dollars but have not been able to find anything worth your money in the main neighborhoods of Jerusalem, I highly recommend checking out Mekor Chaim and Arnona.

There are options of 3 bedroom, 2 bathroom options available on the market today at that price. These neighborhoods are still very centrally located and have great Anglo communities.

Contact CapitIL Real Estate Agency.

Read our guide to Jerusalem real estate prices, which includes a specific section on Arnona real estate prices.

See available Jerusalem real estate here and our new development projects in Jerusalem can be seen here.

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