Apartments in Tel Aviv

In recent years, Tel Aviv has become the chosen town for residence, mainly for young people. Apartment owners, aware of the increased demand, feel need to increase rents Owing to this many young people must share apartments to cut costs. The wide demand for apartments in Tel Aviv caused some apartment renters in Tel Aviv to exploit the demand and ask for much-increased rents, for considerably run-down apartments that in another town could be rented for much less. A single-roomed apartment in Tel Aviv is let for the same figure as a 3-roomed apartment elsewhere.

There are even apartments in Tel Aviv that at one time served as storage units and have been adapted slightly in order to turn them into a so-called apartment.

Apartments in Tel Aviv – How is the Price Fixed?

Many factors affect the price of apartments in Tel Aviv and when acquiring an apartment you must be aware of them.

Number of rooms and apartment size – amongst factors affecting apartment price include number of rooms and apartment size in sq.m. The larger the apartment the more rooms it will have and the price will increase accordingly. If the apartment has a garden or veranda the price will be higher.

The building the apartment is in – also affects apartment price in Tel Aviv. The building gives the prospective buyer his first impression. Therefore apartments in more luxurious buildings will be more expensive. There are buildings with a physical exercise room for residents'' leisure time comfort. This obviously impresses a buyer but it also contributes to the value of apartments in that building.

The value of the unit will also increase if the unit is a private house  with no other unit adjoining it.

Apartment location – the location of the apartment has much influence on the price of apartments in Tel Aviv e.g. the price of apartments in exclusive blocks by the sea will be infinitely more expensive than apartments in the old southern area of Tel Aviv. Apartments in the center of town are also more expensive. This is due to the influx of young people wanting to be near centers of leisure and shopping consequently, comparatively neglected apartments are sold at high prices just because of their location.

The Financial Crisis and its Effect on Apartment Prices in Tel Aviv

Light at the far end of the tunnel may soon be seen by apartment seekers in Tel Aviv. Due to the crisis a decrease in demand for apartments has occurred throughout the country, in particular in Tel Aviv.  People still want to purchase apartments but do not have the means. One reason for this is the increasing unemployment rate.

If an individual does not work and has no regular income the bank is unwilling to provide him a loan for purchase of an apartment if he is unable to pay it off. In conclusion, to those searching for an apartment in Tel Aviv but can delay moving to the big town, we advise to wait till the crisis worsens – demand will lessen even more then prices will decrease.