Tel Aviv Apartment Prices Plunge by Up to 15% as Housing Protests Sweep Israel

Real estate rates fell by average of 6.5% in second quarter of 2011, with 0.5% decline in rental price in July alone.

Apartment costs in Tel Aviv have dropped by an average of 6.5 percent, with the biggest drop prices of 4.5-5 room apartments – 15.3 percent. Prices of 3.5-4 room apartments fell by 8.7 percent. The numbers, however, represent raw and still unprocessed data.

The price of a 4.5-5 room apartment in Israel dropped in the second quarter of 2011 from 3.62 million shekels to 3.06 million shekels. The price of a 3.5-4 room apartment fell from 2.49 million shekels to 2.27 million shekels.

An apartment building in central Tel Aviv, May 2011Ofer Vaknin

On the other hand, the price of smaller apartments rose in the second quarter of 2011: The price of a 1.5-2 room apartment rose by 7.8 percent to 1.8 million shekels. The price of 2.5-3 room apartments rose by 1.4 percent to 1.66 million shekels.

Last month brought surprising news for renters as well: a drop, though a modest one, of 0.5% in the prices asked for rented dwellings. Declines were registered mostly in the rents for large, four- or five-room apartments, which specifically dropped nationwide by 1.2%.