Tel Aviv Rental Apartments Rise In Value

Tel Aviv Apartment Rentals, Summer 2008

By Tel Aviv Apartment Rentals

Tel Aviv apartment rentals are becoming hard to find. Jerusalem apartment rentals are also becoming scarce. The day a good Tel Aviv apartment rental gets listed, it is already taken.

This is true in every neighborhood of Tel Aviv and Jerusalem - including Maaleh Adumim (to the sorrow of the State Department). Apartment rental prices in Tel Aviv and in the capital have increased at least 30% in the last year.

The following is a list of average prices per month for a four-room flat in some of Jerusalem’s neighborhoods: There are many that believe that the government will have to step up and create some low income housing units in the country's most popular cities - Jerusalem and Tel Aviv. Abu Tur: $2,000 Baka: $1,200 - $1,500 Beit Hakerem: $1,200 - $1,800 (depending on street and type of building) German Colony: $2,200 - $2,500 Geula: $1,300 Gilo: $1,100 Givat Oranim: $1,500 Katamon: $1,300 - $1,500 Kiryat Moshe: $1,200 - $1,400 Mekor Chaim: $1,000 Pisgat Zev: $1,100 Ramot: $1,100 Ramat Eshkol: $1,500 Rechavia: $2,200 Beit El (by way of comparison): $500 -$700


Of course prices change in either direction based on the shape of the apartment, floor, and shape and style of the building. Other factors such as proximity to desired places like a popular synagogue, health club, school, etc. affect the price as well. Sometimes a three-room apartment may be relatively more expensive than a four-room flat if small apartments are more desirable. If there is a greater demand for larger flats in a certain area, then larger flats will be relatively more expensive.

So if the average price of a Tel Aviv four-room apartment rental is $1,000, this breaks down to $250 a room. Accordingly, a three-room apartment should be priced at $750. But if an area has a demand for small apartments, a three-room flat may go for $850. If there is a greater demand for large flats, then a six-room flat may be close to $2000, instead of $1500.

No matter what, you will be paying more for an apartment rental this year than you did last year. In Tel Aviv, apartment rentals are on the rise although in recent weeks they have come down by a few points. On July 3, 2008, Uri Chudai wrote in the financial weekly “Calcalist” that in June alone, prices for rentals in North Tel Aviv rose 6.5%. The average two-room rental apartment in Tel Aviv is $1,000 a month.

There are many who believe that the Israel government will have to step up and create some low income rental housing units in the country's most popular cities, Jerusalem and Tel Aviv. Otherwise, it will be impossible for young couples, singles, and even the working and middle class, to be able to live in these two cities.