Tel Aviv Real Estate - August 19, 2005

The Tel Aviv wholesale market plan has been approved by the Regional Planning and Building Board. This plan is being made for site between Carlebach St., Hashmona’im St. and Begin Rd., land that is owned by the Tel aviv municipality. It will be leased to the Wholesale Market Co. of the Tnuva group which submitted the plan. The plan includes 1,125 housing units, with an option for 1,600 units by converting commercial space for residences; 100,000 sq.m. of commercial space; and 20,000 sq.m. of public buildings. The plan includes a four 40-storey high-rises along Begin Rd., 12-storey buildings along Carlebach St. and Hashmona’im St., and 15 dunam (3.75 acres) of open public space.

The average apartment price in the second quarter of 2005 was NIS 712,200, a rise of 2.7% since the previous quarter. Compared to the first quarter of 2004, the rise was noted to be at 5.1%. As per the Central Bureau of Statistics, the average prices of apartments in the second quarter was NIS 712,200, compared with NIS 693,500 in the first quarter and NIS 677,100 in the first quarter of 2004. Average prices in Tel Aviv, Dan and the Sharon regions were seen to be 2.2 times higher than average apartment prices in northern and southern Israel. Price gaps were seen to be larger for five-room luxury apartments and small apartments. The former gap was 2.7 times higher and the latter 3.4 times higher as compared to central region.