Tel Aviv's penthouses prices are already in the clouds
Data from the Bank of Israel for the first quarter of 2021 shows that the rise in house prices is at an annual rate of about 10 percent.
By LEE ZIVPort Tel Aviv Residence (photo credit: ILAN PIVKO)
With the dizzying pace of events in Israel, the corona pandemic seems like a distant memory. Despite, and perhaps primarily due to corona, housing prices are on a strong upward trend. Working from home, and the subsequent hybrid work model, have led many to conclude that investing in a residential apartment confers stability and an appropriate return.Data from the Bank of Israel for the first quarter of 2021 shows that the rise in house prices is at an annual rate of about 10 percent. The severe shortage of apartments in the face of high demand is evident throughout the country, especially in the high-demand areas in the country’s center.A closer look at the luxury and ultra-luxury housing markets, shows that even there prices are sky-high. After a period of stagnation, the market received a shot of encouragement during corona. Wealthy people, especially affluent Jews living in North America and Europe, realized that Israel is home. When the effects of corona caused disasters around the globe, Israel eventually reached stability. Violence experienced by Jews around the world during the past month has clarified the understanding that Israel is a safe haven both personally and financially.Tel Aviv is a cosmopolitan city. The weather is wonderful, the cultural events are back, the restaurants have reopened, and the beach is inviting. There is competition for every available plot for construction, but the most prominent are the prices of luxury apartments from the port in the north to Jaffa in the south of the city. Prices have crossed the NIS 100,000 per square meter mark, and there has been no slowdown. In recent months transactions close to NIS 100 million have been signed. Buyers are well aware that prices are expected to continue this upward trend.The writer is VP sales & Marketing at Port TLV Residence.
