Price Changes in the Tel Aviv Real Estate Market: August 2023
Prices for residential units are holding up in most areas of the country. Surprisingly, they even went up in August in Tel Aviv. The picture is a little less rosy when looking at the new residential units. Those have been more significantly affected. But that’s not the whole picture.
The Number Tel Aviv’s New Apartments for Sale At All Time High
The current environment has been tough for all neighbourhoods, but, like any and all market corrections, the crises affect all irrespective of their relative location to Ibn Gvirol. Well, this is our opportunity. Among The glut in new units hitting the market as we speak, a tiny percentage are actually located in the traditional Old North.
Israeli Shekel Jumps After Netanyahu Delays Judicial Overhaul
Political volatility, especially when persistent will affect the economic fundamentals, no doubt. Further depreciation of the shekel will force of the hand of the Governor of the Bank of Israel to increase the interest. However, we firmly believe in the resilience of the economy and the real estate market and in the transient nature of the current crisis.
Now is the time to increase your Israel real estate and shekel exposure
The political volatility of the recent months will definitely take a toll on the economy , but this is not the first nor the last political flare up Israel has experienced and weathered in its 75 years of existence. We firmly believe in the resilience of the economy and the real estate market.
Recent Old Jaffa Transactions
Recent Transactions in The Old Jaffa Eclectic Buildings of Tel Aviv Recent Jaffa Transactions Edit Date Address No of Rooms Sale Price Size Price/m² Floor Neighborhood 27 Apr. 22 בעל הטורים 3 5 ₪5,800,000 110 m² ₪52,727 שניה+שלישית צפון יפו 3 Mar. 21 שמואל בן עדיה 1 3 ₪4,440,000 71 m² ₪62,535 שניה עג’מי וגבעת […]
Tel Aviv real estate holds steady thanks to low supply and a steady stream of demand.
The CBS numbers are out. A comparison of the transaction prices month over month shows a decrease of 0.2%, hardly the crash that most predicted. A year of year comparison still shows an appreciation of the index 12.7%. It is however the first negative reading of the index since Apr 2020 at the height of the COVID crisis. Is it the start of a slow and painful death or a lone event?
Is the Tel Aviv real estate market in a state of oversupply?
The number of transactions has drastically fallen. The speed and violence of the drop in volume is unprecedented. Prices of new units have come down, but our research points to a fall in prices that is not commensurate with the fall in the number of transactions, far from it actually.
Finally prices are capitulating.
Despite facing a confluence of challenges such as rising interest rates, the technology industry’s recent struggles, the rapid decline of Silicon Valley Bank over just 48 hours, significant decreases in startup valuations, the turbulence of Bitcoin, and the seemingly interminable Ukraine conflict, real estate prices in Tel Aviv have remained relatively stable. However, it is worth noting that transaction volumes have decreased considerably.
Real Estate Purchase Tax Calculator
Every year, during the month of January, Israel Tax Authority publishes new thresholds for Mas Rechisha (Purchase Tax in Israel) according to the Central Bureau of Statistics Home Prices Index for the previous year.
Ultra Luxury Properties Riding the Market Turbulence
Last year, the residences in Herzliya Pituah emerged victorious over Tel Aviv’s penthouses, a feat they’ve accomplished multiple times. The highest-priced residential transactions in Israel during 2022 once again demonstrated that, whilst Tel Aviv’s luxurious high-rise apartments are impressive, there’s simply no substitute for a private spacious home and garden, particularly one that overlooks the sea.
