Tel Aviv luxury apartments (archives)
Photo: Gabi Kessler
Tel Aviv luxury flat prices to plummet
Appraisers Association study shows insufficient amount of buyers to cause up to 20 percent drop in prestigious apartment prices by 2010
Luxury apartment prices in Tel Aviv will drop by up to 20 percent by 2010, a study by the Real Estate Appraisers Association in Israel estimated.
According to the report, some 1,000 apartments in prestigious Tel Aviv towers are currently on the market, however, there are simply not enough buyers who can afford the high prices.
"Today's price levels in prestigious Tel Aviv projects have skyrocketed by tens of percents over the past two years, reaching $7,000 per square meter, which is very outrageous, even when economic fluctuatios are taken into account," said Real Estate Appraisers Association chairman Ran Wiernik.
The unprecedented number of apartments for sale has caused an excess of supply over demand, he explained.
"Even if we include affluent Israelis and investors from abroad, their number will still be much less than the number of apartments on the market," said Wiernik.
Wiernik explained that many of the foreign investors prefer cheaper apartments outside of Tel Aviv.
According to Wiernik, the Appraisers Association's study shows that within as early as the coming year, a 5-8 percent drop in prices will be noted in the most popular areas in Tel Aviv.
