Against the backdrop of shrinking land supply, stable demand from both local and international buyers, and a typical post-uncertainty recovery trend, the residential real estate market in Tel Aviv is becoming a hotspot. Projects promoted by the Hagag Group clearly reflect the direction of the Israeli real estate market, especially in the Tel Aviv area.

There is a recurring pattern over the years: Periods of uncertainty - whether security-related, economic, or political - create temporary slowdowns, but often precede the next wave of price increases, especially in prime assets. For example, following the Second Intifada in the early 2000s, the market experienced a rapid recovery, with apartment prices in Tel Aviv rising by tens of percent within just a few years. Even after Operation “Protective Edge” in 2014, which was accompanied by a period of relative stagnation, the market quickly returned to rising prices, particularly in luxury properties.

Over the entire past decade, apartment prices in Tel Aviv have increased by over 100%, with properties in highly sought-after locations leading the trend.

This dynamic is not coincidental. While demand - both local and international - remains stable and even strengthens over time, supply in Tel Aviv is inherently limited. Land reserves are scarce, planning processes are complex and lengthy, and high-quality properties become increasingly rare as the city continues to develop and become more densely populated.

In this context, 2026 is emerging as an exceptional moment. On the one hand, a market in a phase of pause and stabilization; on the other hand, strong fundamentals including continued urbanization, infrastructure and transportation development, the strengthening of employment hubs, and consistent demand for premium properties.

For investors who understand market cycles, the implication is quite clear: This is less about waiting for certainty and more about identifying the stage just before it materializes. History shows that entering the market during periods of uncertainty is what enables the maximization of upside potential, just before prices complete their adjustment to demand levels.

INFINITY Tower.
INFINITY Tower. (credit: Hagag Group)

The Hagag Group

Within this reality, the Hagag Group stands as one of the most established and prominent companies in Israel’s luxury real estate sector, and a key player in the luxury market of Tel Aviv and the Gush Dan area.

Over the years, the group has been responsible for a series of landmark projects in the city skyline, including Meier on Rothschild, Port TLV Residence, MOMA Tel Aviv, and the Young Towers. These projects quickly became milestones in the luxury residential market and illustrated the shift from purely functional living to a comprehensive lifestyle experience.

Today, the group is marketing several new projects that reflect a broader trend in luxury living: A shift toward a holistic residential concept that combines private space planning with shared spaces and complementary services for maximum urban comfort.

Three projects that outline the future

FIRST Sde Dov: A new district on the waterfront

The Sde Dov area in northern Tel Aviv is considered one of the most attractive and rare land reserves in the city, and one of the main development centers of the coming years.

The FIRST Sde Dov project includes a 45-story tower alongside boutique buildings, offering a wide range of apartments: from 2–6-room units to penthouses and duplexes. The architectural design, by the New York-based ODA firm, brings a clear international standard to the local skyline.

The FIRST Sde Dov project.
The FIRST Sde Dov project. (credit: Hagag Group)

Beyond the physical aspect, the project reflects a modern residential concept that offers a complete world of complementary services and blends hospitality elements with everyday life: An infinity pool, spa complex, gym, lounge bar, and entertainment and leisure spaces integrated into daily routine rather than serving as an add-on.

Masterpiece Bavli: Quiet luxury in an established environment

The Bavli neighborhood continues to strengthen its position as one of the highest-quality neighborhoods in northern Tel Aviv, thanks to its combination of proximity to the city center and a quiet green environment near Yarkon Park.

The Masterpiece Bavli project overlooks a green park and offers spacious apartments with open views from the Mediterranean Sea to the Judean Mountains. The emphasis of the project is on meticulous planning and privacy, alongside significant investment in shared spaces.

The project includes a swimming pool, spa, gym, and especially thoughtfully designed hospitality spaces, planned as part of a continuous flow of uses within the complex itself. In doing so, it reflects a clear trend in the luxury market: Moving from impressive towers alone to residential environments that offer a complete quality of life.

INFINITY TOWER: Centrality, accessibility, and urban presence

Between Jabotinsky and Ibn Gabirol, in the heart of one of Tel Aviv’s central intersection points, stands INFINITY TOWER - a project offering maximum proximity to the city’s cultural and entertainment hubs, high transportation accessibility, and a strong architectural presence.

The tower, designed by architect Moshe Tzur, rises 51 floors alongside a boutique building, and offers planning that maximizes urban and sea views through wide glass façades and large balconies.

In addition, the project includes an impressive lobby, green spaces, fitness facilities, and an infinity pool overlooking the city, as part of a holistic approach that views residential living as a broad life experience rather than just a matter of location.

Between timing and opportunity
The three projects represent three different approaches to living in Tel Aviv: A new district, an established neighborhood, and a central location - but all operate under the same fundamental conditions: A unique product, limited supply, and stable demand.

In such a reality, the question of investment is not only about location, but primarily about timing. And history, time and again, points to the same moment - one that comes precisely before.

Economic situation

This is precisely the time to invest. In a period of uncertainty, when the real estate market is stagnant. Land supply is shrinking. Rising antisemitism is contributing to increased immigration flows.

For more information: Hagag Group

This article was written in cooperation with Hagag Group Advertisement