The Tel Aviv luxury property market has been heating up over the past few months, after seeing a short period of stagnation in deal volume and price increases. Tel Aviv’s great lack of top market property has been a growing issue for those looking to invest in Israel, and developers have begun to take heed, with new projects, both low-rise and high-rise beginning to hit the market.
Herbert Samuel 10, being built in the southern edge of the city along the Mediterranean, is a popular project, consisting of 21 floors and approximately 40 apartments. Buyer’s hunger for larger spaces, however, are driving the sale of multiple units in high-rise projects, and in all likelihood, the project will end up consisting of less than the anticipated 40. Last month a 400 sqm unit on an upper floor, though not the penthouse, was sold for 47 Million NIS. The 102,000 NIS (28,500 USD) price per square meter reflects the unit as a shell, a popular options for top-end property buyers, who prefer to design the interiors themselves for a custom touch. Luxury property in Tel Aviv typically averages between 40,000 NIS (11,000 USD) to 50,000 NIS (13,000 USD) per square meter, when bought off-plan. The high demand for such property, however, only creates a higher price tag for the most desirable and unique properties on offer.
The record for highest price per square meter was broken last month in another popular top-market project being built along Tel Aviv’s seaside promenade, the David Promenade Residence. Located adjacent to the future Kempinski Hotel, the David Promenade is one of Tel Aviv’s most in-demand residential real estate projects to date. A 612 sqm apartment on the 17th floor was recently sold for 81.46 Million NIS, which comes out to 133,100 NIS per square meter. For comparison, average prices in the project to date have hovered around 60,000 NIS per square meter.
Where is the luxury property market in Tel Aviv heading? If the deals of the past month are taken into consideration with those of the past three years, the Tel Aviv real estate market is going in the right direction, with demand ever growing, and the supply streaming in at a steady speed.