Summer 2012: The Tel Aviv Real Estate Market

As the peak of summer approaches, foreigners from everywhere keep flocking to Tel Aviv’s beaches, cafés and bars, enjoying the very best of what this great city has to offer… and along with it the urge to calling Tel Aviv home.

So, what’s happening in today’s local real estate scene?

A recent statistics shows that in the first half of 2012, there was a rise of 3% in prices both for sales and rentals. In a survey issued by CNBC based on data from Knight Frank, Israel was placed 3rd on five year home price rise beating Singapore.

After interest rate cut from 3.25% to 2.5% in February, the real estate market appears to be coming back with new mortgages issued by banks jumping by more than 14% in March, compared to previous months.

In fact, the past two months have shown a higher supply and demand both in sales and rentals and a rise in the number of deals. Recently, a renovated, 2BR, 65 SQM apartment in Central Tel Aviv was sold for 2.38 Million NIS; a renovated, 2BR, 75 SQM apartment with a balcony in Basel was rented for 7,400 NIS.

With the financial uncertainty in Europe, the US Dollar – IL Sheqel strengthening reaching 4.08 NIS – its highest in 3 years, it appears that this summer may well be a good time to buy a home in Tel Aviv.