Keeping Warm: The Tel Aviv Real Estate Market – January 2013
After a cold week of stormy weather, the Tel Aviv skies are painted once again in blue with plenty of sunshine. The cold weather, as it seems, did not effect the real estate market and the “low” season is proving to maintain a steady rhythm.
As we’ve approached the New Year, I can’t help but wonder – what will be of the Tel Aviv real estate market in 2013? Will prices continue to rise? Or will all this burst in our face like a giant bubble?
Being affected by the financial situation, mainly in Europe, it is hard to determine whether real estate prices will keep on rising. A recent article in ‘Haaretz’ pointed out that real estate prices in Tel Aviv have increased 71% from 2000 – 2011, and although the market has cooled down a bit over the past two months, prices are still relatively high mainly in Central Tel Aviv where demand is not nearly satisfying the supply.
In general, the low season marks a good time to buy in Tel Aviv with reasonable offers available in central locations. A duplex-roof top apartment is currently offered for sale in Central Tel Aviv, in a great location between Ben Gurion & Gordon and only steps to the beach, in a nice, well kept building for 2.95 Million NIS; however semi-premium homes are rarer to find now days.
Recently in Central Tel Aviv, a 200 SQM penthouse offering a 200 SQM roof top terrace in a brand new building was sold for 11.5 Million NIS; that is 43,500 NIS / 11,500 USD on a calculation paid per square meter, making it a fantastic deal mainly for its size, location and amenities.
For those who are in the search for more luxurious offers, the HaYarkon St is abundant with new developments offering luxurious, sea view apartments with prices ranging anywhere from 10,000 – 20,000 USD per square meter. The HaYarkon 134, is an international style building offering various luxurious apartments in a fantastic location.
The A.D. Gordon 5, is a contemporary, luxurious new boutique building, nestled in one of Tel Aviv’s most sought after streets and the duplex penthouse, comprising of 246 SQM with 140 SQM sun balconies is available for sale.
The rental market on the other hand, keeps on increasing with decent, renovated 2BR apartments in Central Tel Aviv ranging between 7,000 – 7,500 NIS.
In overall, buyers who are looking for 2BR apartments the market currently offers reasonable deals in central locations; semi-premium homes however are rare now days and are still high-priced; for those looking at the luxury market, it seems to be standing strong as Tel Aviv offers some outstanding sea-side gems.