How Much Are People Willing to Pay to Live in Tel Aviv? Apparently, Quite a lot…
“Tel Aviv is the center of it all”. “We have two countries here, the State of Israel, and the State of Tel Aviv”. “Oh what a dream it would be to live in Tel Aviv”. We’ve heard them all. It seems on the surface, that everyone in Israel would sell their first born to move within the relatively small borders of this city of 404,000 souls within 51 square kilometers / 19.8 square miles. The prices both within the city have risen at a higher rate than any other place in Israel over the past three years. On the other hand, you will find plenty of people in this country who would like nothing less than stay away from Tel Aviv forever, usually citing traffic, smut, noise, and of course, housing prices. In my line of work, obviously, I encounter more of the former group, as I live and work in Tel Aviv. I ask everyone I encounter, how much is it worth it to you to live in this city? For the same price as a run down one-bedroom in a slummy neighborhood here in Tel Aviv, one could buy a beautiful 3 bedroom home with property in a relaxing northern town or in the breathtaking south of the country. I rarely get an answer in regards to a number they’d be willing to put on it.
Apparently, this question interested the Israeli Central Bureau of Statistics as well, and last week they published a report which investigated just how much more Israelis are willing to pay to be in Tel Aviv. Tel Aviv’s twin sister, the city of Ramat Gan, located directly to the East, according to the report, has no socioeconomic difference from Tel Aviv. The city hosts the country’s largest banks and corporations, the profile of residents is essentially the same, and many of its neighborhoods are actually closer to Tel Aviv’s center than many Tel Aviv neighborhoods. Yet, not so surprisingly, we see that as of 2010, Ramat Gan’s average price per square meter came in at 16,907 NIS, whereas Tel Aviv’s was 21,121 NIS. This, based on nothing else but name.
So I ask you, dear real estate follower, how much more are you willing to pay to live in Tel Aviv? As always, I’m happy for your comments, questions, and feedback.