Real Estate in Tel Aviv – continued
By: Amir Yarkoni
Tel Aviv is spread out, but the heart of the city is quite small in size.
Roughly, the city "heart" is between Neve Tzedek in the south up to the Yarkon River in the north and from the sea in the west to Namir road in the east.
There are large suburban areas in the south, north and north east of Tel Aviv which are part of the municipal Tel Aviv but not really part of the city tempo and spirit. So if you would like to actually experience "living in Tel Aviv" those are not your best shots.
If you are looking for an investment, you may find good options both in and out of the city heart, most probably outside of it.
Real Estate Demand in Tel Aviv
The center of Tel Aviv has seen a massive outgoing immigration of families in the 80's. The growing crowdness of the area, noise, traffic, air pollution and the aging, rundown streets in much of the area led families to seek a better quality of life outside the big city or in its north suburbs. The vacancy was filled with young people seeking the beach, party atmosphere, culture and outgoing nature of central Tel Aviv. This population is mostly renting rather than buying.
The source of home demand in Tel Aviv varies greatly between the 3 "types" of Tel Aviv: North, south and center. North and South of Tel Aviv are in nature quasi suburban areas. In general, the north is a middle-high class suburban area and the south is middle-low class suburban area. That means that most residents are families and in both, demand for homes is quite stable.
|The source of home demand in Tel Aviv varies greatly between the 3 "types" of Tel Aviv: North, south and center.
Today many of central Tel Aviv residents are bachelors and couples in their 20's or early 30's, and old people, remnants of the old Tel Aviv. Central Tel Aviv, as the cultural center of Israel, also attracts musicians, actors and all sorts of artists.
The home demand in Ta is mainly for rent purposes by youngsters, or demand for buying in new buildings, by middle-upper class families.
Tel Aviv Real Estate Price Ranges
Like any city in the world, real estate prices depend on location.
As a general rule the north of the city is more expensive than the south, with some notable exceptions such as Neve Tzedek, a "hip" quarter in the south with impressive real estate price tags.
South Tel Aviv
South Tel Aviv is in some parts rundown and some reconstructed. Price ranges for a 3 bedroom apt. in the south between $80K - $150K, excluding Neve Tzedek.
Florentine is an old, very urban quarter of Tel Aviv and is quite trendy among young and generally penniless Israelis. Many foreign workers also live in this quarter as rent prices are low. The neighborhood is quite rundown and suffers from lack of open spaces and from small industrial workshops that stand side-by-side with residential buildings. Some new apartment buildings were built in recent years, and those apartments sold/rented for higher rates than the neighborhood standards, but still low in Tel Aviv standards. Florentine has the potential to become a profitable real estate investment for the long run, as plans are to re-construct the neighborhood like other areas of south Tel Aviv, e.g. Neve Tzedek, Rothschild. The main problem is the noise, dust and dirt coming from the nearby veteran industrial workshops which are privately owned and do not allow for a good standard of living as long as they are present. If and when they are removed, there is a good chance that the place will be reconstructed and real estate prices rise dramatically.
"Schunat hatikwa" (the neighborhood of hope) and next-by "Yad Eliyahu" are located in the south-east of Tel Aviv. Both are working-class, veteran neighborhoods with lots of project-style building dating back to the housing project (shikunim) invoked by the government in the 50's to accommodate the massive waves of immigration to the new country. In these areas there are still many on-ground houses with garden and relatively big lots. Those might be good candidates as on-ground houses are becoming rare and expensive in the Tel Aviv area, with the growth of the population and the disappearance of open spaces. In that case, if the small neighborhoods of the south maintain their low-building on-ground style, prices might go up.
Central station area is a rundown and very urban area, with most residents foreign workers. It is an unpleasant place to live, next to the endless stream of buses coming in and out of the central station. Property prices are probably not expected to rise as long as the central station is next door.
Central Tel Aviv
Property prices may vary substantially according to location and condition and the price range for a 3 bedroom apt. generally starts from $120K up to $350K for fancy penthouses or sea-view accommodation.
Central Tel Aviv, the liveliest area of the city, is very crowded. As far as building style, it is totally inconsistent, a mix of old and new with no apparent logic or order.
|Central Tel Aviv, the liveliest area of the city, is very crowded.
The center of the city lives along the veins running south to north, parallel to the sea. Hayarkon st. is running by the sea, and eastward are the routes of Ben Yehuda, Dizengoff and Ibn Gvirol. East to West the veins of the city are Bugrashov in the south, Frishman, Gordon, Arlozerov, Jabotinski, Nordau and bnei Dan, running by the south bank of the Yarkon river. As far as real estate, there are very few open spaces or even open lots in that part. The main real estate potential lies in demolishing old, low-built apartment buildings and instead building an 8-10 story, high standard accommodation.
North Tel Aviv
North Tel Aviv generally offers a different standard of living than the rest of the city, and the rest of Israel, as far as Urban lifestyle goes. Price ranges for a 3 bedroom apt. ranges $200K - $600K.
Ramat Aviv Gimel is an upper-income neighborhood in the vicinity of the Tel Aviv University. The neighborhood has mostly 8-12 story luxury buildings and some parts offer on-ground houses. Old Ramat Aviv is next by, originally built as project-style housing but today many parts of the area are rebuilt and tempting. The proximity to the university makes it popular with students, raising the demand for rental homes.
At the North-west of Tel Aviv, Shiikun lamed, located opposite of Sde Dov airfield, is a middle-high class borough with 8-12 story buildings, close by to the beach. The neighborhood suffers from the proximity to Sde Dov with takeoff and landing of airplanes, and if plans to relocate the airfield will be carried out, property prices in Shiikun lamed are expected to rise.
A new neighborhood called "kochav Hatzafon" (the star of the north) was built in recent years, on the other side of the Yarkon, a bit southward from Shiikun lamed, offering high living standard towers, 8-15 story high. There are still some open spaces in this neighborhood, presenting some real estate opportunities.
In North Eastern Tel Aviv, Zahala and Tel Baruch are spread out all the way to the border of Tel Aviv with Ramat Hasharon. They offer high standard of living and an half urban half suburban lifestyle, 15 minutes drive from the Tel Aviv city center. There are building options in those neighborhoods as empty lots are still available. The neighborhoods offer both 8-12 story buildings and on-ground accommodation.
Part I | Part III