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Aug 18, 2016

Property in Tel Aviv is very expensive, and rental yields are poor


Last Updated: Aug. 18, 2016
TEL AVIV - YAFO Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
80 sq. m. 950,880 2,433 3.07% 11,886 30.41
120 sq. m. 1,529,040 3,274 2.57% 12,742 27.28
Districts researched:
Tel Aviv: Ramat Aviv, City Center, Sheinkin, Ben-Yehudah, Dizengoff, Kikar Hamedinah (Rothschild), Shikun Tsameret, Shikun Haketsinim, Neve Tsedek, Old Yaffo/Jaffa, and Sea Area
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Gross rental yields i.e., the rental return on a property if fully rented out, before all expenses, are poor - almost at Monaco-like levels. Gross rental yields for apartments in Tel Aviv are near or under 3%.

This tends to support the popular view that property is somewhat overpriced in Israel.

An upscale 120 sq.m. apartment in a residential area of Tel Aviv cost on average 120 square metre (sq. m.) now costs around US$ 12,700 per sq. m., whereas three years ago, it only cost around US$ 7,800 per sq. m.

These are the sort of prices that can be seen in Swiss cities of Geneva and Zurich, or in Canada’s Toronto and Vancouver.

Renting an apartment in Tel Aviv would cost you anywhere from US$ 27 per sq. m. per month to around US$ 30 per sq. m. per month, which means that you can rent an 80 sq. m. apartment for about US$ 2,430 per month, and a 120 sq. m. apartment for around US$ 3,300 per month.

Round trip transaction costs are low to moderate on residential property in Israel, with most costs paid by the buyer. See our Israel residential property transaction costs analysis and Round-trip transaction costs in Israel compared to the continent






Comments

#1 GIL | August 07, 2010

The price above per sq. m is very general... because the prices for renovated apartments in Tel Aviv is much higher than that maybe double more like $9,204.99 per sq m. at least that is the deal I am signing tomorrow. Check out www.bartenura15.com for further information.

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