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.

Tel Aviv housing - Ofer Vaknin - May 2011
Ofer 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%.