The residential real estate market on Tel Aviv's Rothschild Boulevard is seething. Prices of exclusive properties in the area have shot up by 70 percent in the past four years, and the average price of apartments on the avenue has climbed by about 50 percent, TheMarker has learned.
Luxury apartments in the area start at $7,000 per square meter for new apartments from contractors (about $700,000 for a four-room apartment) and can reach $15,000 per square meter millions for particularly exclusive apartments such as penthouses, and about $400,000 for a mid-range, four-room apartment.
In addition, the niche market of buildings for preservation has gained favor over the past two years. Renovated buildings for preservation are slightly lower than exclusive apartments in towers, and are selling for an average of $8,000 per square meter. Nevertheless, a penthouse apartment in a project at Yehuda Halevy 14 was sold for $4 million, reflecting a price of $13,000 per square meter.
Real estate sources say that in light of severe limitations on residential construction in the downtown area, prices are expected to continue to rise. The Tel Aviv municipality has recently approved a new usage policy for the area stipulating that no new residential construction rights be granted, although transfer of construction rights from buildings for preservation will be possible in some cases. Tel Aviv Municipal Engineer Hezi Berkowitz said the decision is meant to preserve the area as a central business center and prevent it from turning into a residential area.
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