Tel Aviv beach.
(photo credit: Hadas Parush)
It’s arak wishes and humous dreams for billionaires.
According to a survey by UK-based Beauchamp Estates and market intelligence group Dataloft, Tel Aviv is among the most popular spots in Western Europe for billionaires to buy homes.
“Among Western Europe’s capital cities, London is the favorite billionaire property hot spot with 67 billionaires living in the city, ahead of Paris on 25 and Geneva on 18,” the survey said. Tel Aviv came next with 17 billionaires.
Outside of capitals, the French Riviera was home to 39 billionaires, followed by Tuscany (14) and the Greek islands (9).
What makes Tel Aviv so attractive? “Seventy-five percent of all billionaires have a home in a city crucial to their financial, banking and business interests, while most also own a dream holiday/weekend home where they retreat from the pressures of business activities and city life,” the report said.
It was not clear if the Tel Aviv billionaires’ estates tended to be their primary residences or (one of) their vacation homes. The typical billionaire has four homes around the world.
Tel Aviv’s share may seem significant, but it’s really just a fraction; globally there are over 2,170 billionaires, worth a combined £3.88 trillion. Of those, 60% made their cash themselves, while 20% inherited their wealth and another 20% had wealth from both inheritance and their own doing.
While billionaires surely stimulate the economy when they spend or bring business to Israel, foreign investment in the local real estate market is one of the drivers that has pushed prices high, alongside a shortage of supply. According to the Bank of Israel, home prices increased 60% above general inflation since 2008.