When it comes to the novel Coronavirus, there’s no mincing of words. The global pandemic has affected nearly every aspect of everyday life in every corner of the world. Whole cities and countries are on lockdown, unemployment has reached record-high levels, and those seeking to navigate the new normal, make a living and survive, must find new ways of investing their time, skills and resources.
Compared to other countries, Israel has fared very well during these trying times. To date, 74.8% of the 21,082 confirmed cases have made full recoveries, and just 307 people have lost their lives. These findings have led Israel to be ranked 1st among the top 10 safest countries with respect to Covid-19. If that’s not reason enough to hightail it to Israel and set up roots, Israel’s warm community and innovative spirit most certainly are. As the Tel Aviv residential real estate market seems to be exhibiting relative immunity to the effects of the novel, yet devastating pandemic, investing in properties in Israel’s bustling metropolis – for you to live in now, for your loved ones down the line, or as a smart, future-proof investment, seems to be the way to go.
Sales data from the first quarter of 2020 paints a mighty interesting portrait of the Tel Aviv market: a 4% increase in the city’s prices, despite just a 0.3% increase in average prices. One can assume that there was a significant decrease in the number of deals closed in April and May. However, it seems that the gap between the demand for and supply of residential real estate in Tel Aviv has enabled the city’s real estate market to maintain its traditional stability.
Now, more than ever, Tel Aviv residential real estate is a smart investment for foreigners looking to own property in Israel. Let’s dig deeper into the reasons why a Tel Aviv apartment purchase can help inoculate you against the Coronavirus and its effects.
Despite security concerns, Israel remains a warm, safe haven
Israel has long been known for its population of Sabras (native Israelis) – prickly on the outside and soft on the inside. Their can-do attitude, warm demeanor and strong personalities have ideally prepared them to weather any storm, be it a global pandemic or the Friday afternoon marketplace rush. In the wake of rising antisemitism across the globe, Israel is the safe haven ready to welcome a new wave of aliyah; Jewish immigration from around the world, even as the second wave of Covid-19 is rearing its ugly head.
While some new olim (immigrants) were already planning to move before the pandemic hit, others were impressed by Israel’s swift and uncompromising response to the novel virus, low infection and mortality rates, and demonstrations of unity and brotherly love. This, coupled with their understanding of how their home countries’ responses differed, how deep into crisis mode they sank (and continue to sink), and how slow their economies are to return to normal, especially in Europe and the US, made making aliyah now a smart, safe decision. Now, as these new olim plan for their future in Israel, they are seeking out places to live, work and prosper. With its booming workforce and high standards of living, Tel Aviv is an attractive place to start, especially as the country continues to deal with and recover from Coronavirus.
200 thousand Israelis who emigrated abroad in search of fame, fortune and other benefits have already made their way back to their “true home” in Israel; 15% of them after lengthy periods of time in the Diaspora. And among those not ready to call Israel home just yet, investing in residential real estate in the Holy Land’s modern metropolis is a popular. Surefire way to ensure their families contonue to retain ties to Israel – the land and the people, for years to come.
Despite the Coronavirus recession, Tel Aviv’s real estate market continues to boom
Tel Aviv has long suffered from a tremendous lack of available real estate, especially in the center of town. Prior to the outbreak of the Coronavirus, housing scarcity in the city was at an all-time high, which was, naturally, exacerbated in the wake of a near screeching halt to all of the Planning Authorities’ activities as lockdown and restrictions were imposed. As such, even if new projects were just about to be approved and granted construction permits, they were effectively frozen, leading to significant delays for all stakeholders involved.
That being said, demands for housing in the heart of Tel Aviv are expected to soon surpass the available supply. Many people are currently seeking to shift gears and move as close as possible to stable job markets. Renters are looking for places to live that meet their sought after standards of living, while still being close to work, or conveniently located near public transportation lines. Meanwhile, the city’s transportation has been undergoing a facelift, with the imposed lockdown well-spent on projects such as the Tel Aviv light rail, Israel Railways’ Savidor and HaShalom station and others.
Tel Aviv city dwellers and workers returning to the city’s streets will be able to enjoy quicker, more seamless transportation to more areas within the city and beyond, making it far more attractive for investors to own and rent out property in the center of Tel Aviv.
Tel Aviv apartment life is a community in and of itself
While many foreigners grew up with the ideal of a large, detached home cordoned off by a white picket fence, living in a high-rise building comes with a unique set of benefits, especially in Tel Aviv. These buildings are built to impress, with all the creature comforts those living abroad consider part in parcel with apartment life. From management companies, inviting lobbies and, impressive finishings, and to amenities, such as concierge services, swimming pools, gyms, party rooms, and more. Tel Aviv apartment dwellers find themselves immersed in a community within a greater community – neighbors they pop over to for a cup of sugar or a single egg, friends their children can play with without having to ferry them off during rush hour traffic, and more. And with management companies overseeing building payments and upkeep, this living option makes integrating into a new home life easier and more seamless than ever.
Whether you’re looking to buy an apartment in Israel for yourself for now, for your kids down the line, or as in investment, it is clear that unique residential properties in Tel Aviv are the way to go.
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