However, is it a wise investment that yields an adequate return?
In regards to future betterment of the property, it is impossible to guess how much the price of apartments in the city will rise. However, in terms of annual returns, it is probably worthwhile to find other investment alternatives.
In data released by the Global Property Guide on apartment prices in major cities all over the world, rental yield on a 120 square meter apartment in Tel Aviv stands at 2.57%, which ranks fifth worst in the world for an investment prospect.
Taipei, the capital of Taiwan, is rated as the world's worst city for rental yield, coming in at 1.57%. Following Taipei is Vienna (2.18%), Mumbai (2.39%), and Singapore (2.54%). In sixth place after Tel Aviv stands both New York City and Hong Kong (2.75%).
To illustrate the cost of real estate in each of the major cities, the Global Property Guide examines how many years of rent are needed to purchase a 120 square meter apartment.
In the case of Tel Aviv, it would take 39 years. In comparison, in Taipei, it would take 64 years of rent to buy an apartment, while in Kishinev, Moldova, only 10 years.
In terms of price per square meter, Tel Aviv ranks 11th in the world, coming in at $12,742 (NIS 46,575).
Monaco comes in 1st place at roughly $60,000 per meter and Dar es Salaam comes in last at $700.
If you're looking for the highest yield on rent, look to Kishinev, the capital of Moldova, where the annual yield for an apartment of 120 square meters is 10%, followed by Kingston, Jamaica, with a 9.75%, followed by Cairo at 9.4%.
(Translated and edited by Fred Goldberg)