As both a new comer or a veteran to the Tel Aviv real estate market, you may have found yourself asking yourself this very question. In a market where the newest and most modern apartments fetch the highest prices, way above market value, many home buyers and investors find themselves willing to wait the 2 to 3 years that many new projects require until you’re able to call your new home, “home”. Just as many, of course, find it difficult to justify the wait time, for both practical and market reasons.
Both of these points of view, of course, are completely valid. With the Tel Aviv real estate market in a period of “wait and see”, it’s a challenge to know if you’re really getting the best deal. With a number of options available, whether from the developers themselves, or within the framework of a buying group, prices in new projects throughout the city can vary immensely, from terrific bargains way below the market value, to high-end luxury projects that sell in excess of 40.000 NIS per meter.
Due to the current housing situation, many developers have begun to dramatically slash asking prices on new apartments, in the hopes of restarting the market. Most of these properties, many under 25.000 NIS per square meter, are located in some of the most in demand neighborhoods of the Tel Aviv, such as Neve Tzedek, Lev Hair, and the Old North, where prices have stayed level throughout the summer. According to the most pessimistic forecasts for the market, prices will fall up to 10% over the next 3 years, making anything under 25.000 NIS per meter quite the attractive deal.
The options are nearly endless, from small and in demand one bedroom units for investors, to large 4 and 5 bedroom apartments ideal for families looking to grow. Projects are sprouting up throughout the city, in the form of both new buildings, floor additions, and historic buildings for preservation. For any believer in the Tel Aviv housing market, or for anyone looking for their perfect home in the city, buying new can be very attractive, staying safe from the fluctuations of the market.