Tel Aviv Real Estate Market Report April 2022
he Tel Aviv real estate market has been the subject of numerous news articles as of late, showing impressive growth in pricing, demand, and mortgage lending. This press exposure hasn’t been limited to Israel, but in the international press as well, with Tel Aviv finally being recognized as a global investment hub, not just for high-tech, but for residential and commercial property as well.January 2022 saw the largest month-by-month growth in Israeli real estate prices since 2011, growing 2.1% nationally. The entirety of 2021 saw Israeli residential real estate prices rise by 13%, whereas typically prices in Israel rise 7% per year.
The growth isn’t limited to prices, however, but also in the number of transactions. The net number of Israeli real estate transactions is up 50% from 2019, despite the Pandemic. While transactions are at an all-time high, however, it is interesting to note that this has been made up mainly of local Israeli buyers, with foreigners mainly inactive over the past two years due to travel restrictions.
While there were notable deals by foreign buyers being done sight unseen, the volume of absolute transactions by foreign nationals has been hit, while the total number of transactions are up. Now with the skies open and with the large influx of built-up demand by foreign buyers reported by real estate professionals, one can expect more deals and higher prices in the short term. Also of interest to note is that the number of real estate investors, define as those investors buying units to rent out, have dropped 70% since before the Pandemic, indicating that the buyers over the past two years have mainly been end-users buying for personal use. This is seen in the 10% increase in rental prices in Tel Aviv in 2021 as less rental units are available.