Summer Season: The Tel Aviv Real Estate Market – June 2014
Summer time. The Tel Aviv skies are painted in blue offering plenty of sunshine, and sun worshipers from all over the world are flocking its shores. Its’ streets filled and vibrant everywhere you look. Summer in Tel Aviv is hot, hot, hot, but how hot is the real estate market?
Every year as we approach summer, I ask myself – what will be of the Tel Aviv real estate market? Will demand continue to rise? Or are prices getting steeper and steeper, scaring away buyers and foreign investors?
With Anti-Semitism rising in Europe the demand for security, aka, buying-an-apartment-in-Tel Aviv-just-in-case, is rising as well attracting the attention of many European buyers to the Central Tel Aviv market.
Spring and early summer appear to have come by with extremely high demands of 2-3 bedroom apartments anywhere centrally located.
Recently in Central Tel Aviv, just off Ben Yehuda near Arlozorov, a 3 bedroom / 2 bathroom, 105 SQM beautiful, fully renovated & designed apartment in a well maintained building was sold for 4,550,000 NIS; that is 43,333 NIS on a calculation paid per square meter. On a quiet side street by Gordon and Dizengoff, a 2 bedroom / 2 bathroom, 95 SQM beautifully renovated apartment was sold for 3,290,000 NIS; that is 34,631 NIS on a calculation paid per square meter. By Kikar Rabin, a super bright and renovated 2 bedroom / 2 bathroom, 85 SQM apartment on the top floor was sold for 3,070,000 NIS; that is 36,117 NIS on a calculation paid per square meter.
The market has maintained a steady rhythm with prices keeping firm and average prices p/sqm in Central Tel Aviv are still in the 36,500 NIS to 45,500 NIS range.
The rental market as well has kept a steady pace, with renovated 2BR apartments in Central Tel Aviv ranging between 7,700 – 8,500 NIS.
In overall, the spring-summer season has been known to be the ‘high season’ in real estate along with high demands and yet this year the supply of apartments seem some-what limited, with good apartments in prime locations being snapped before anyone notices. So if you’re after a well maintained / renovated 2 bedroom apartment in a central location make sure to be well prepared and decisive in the next month or so and know that competition over an apartment can be tough.