Property prices still on the rise

Over the past year, rental and purchase prices have soared in the north, risen significantly in the south and gone up slightly in the center of Tel Aviv.

By MIRIAM BULWAR DAVID-HAY (TRANSLATED)
Rental and purchase prices for property around Tel Aviv have continued to climb over the past year, especially in the desirable northern neighborhoods but also in the less-prestigious south, a city-wide survey of property prices has found. The survey, carried out by www.local.co.il in conjunction with the madas website, compared prices from September 2007 to September 2008, and found that over the year prices soared in the north, rose significantly in the south and went up slightly in the center of the city. According to the report, in the north the average rent for a two-room apartment rose by nine percent over the year to NIS 3,686 per month, and for a three-room apartment skyrocketed by 13 percent to NIS 4,787 per month. In the south, the average rent for a two- or three-room apartment rose by six percent over the year, to NIS 2,665 and NIS 3,251 per month respectively. In the center, the price rises were smaller, with the average rent for a two-room apartment rising by two percent to NIS 3,320 and for a three-room apartment by four percent to NIS 4,557 per month. The report said that one factor driving prices up in the north was the closure of a number of student dormitories at the University of Tel Aviv, leaving hundreds of students looking for rental accommodation in the area. The survey also found that purchase prices were continuing to rise around the city, although the report did not state by how much. It said the average price of a two-room apartment was now NIS 777,250 in the south of the city, NIS 1.125 million in the center, and NIS 1.473 million in the north. The average price of a three-room apartment was now NIS 855,154 in the south, NIS 1.658 million in the center, and NIS 1.662 million in the north.