It’s no new news story that real estate prices in Israel are continuing to rise, and yesterday the government confirmed the hype. Prices throughout the country have risen 5% from the corresponding period last year, and 0.9% from Q4 2012. The greatest increases were seen in Tel Aviv, where prices jumped 11% from last year, and 2% from Q4 2012.According to the report, the average price of an apartment in Tel Aviv now stands at 2.56 million NIS, or approximately 699,000 USD. The strengthening of the Shekel, in combination with the ever increasing demand for properties in the city are cited as the main reasons for the price increases. Since 2008, prices of Tel Aviv apartments has risen an astonishing 57%.
The rise in prices isn’t unique to Tel Aviv, however. Beersheba has seen an increase in 8% from last year, with the capital city of Jerusalem’s real estate prices rising 4%. The price increases can even be seen as far as Eilat and Haifa, having risen 6% and 7% respectively over the past year. Demand throughout the country has continued to rise, with new building projects still years away.