Tel Aviv is ranked the 8th most expensive city in apartment costs, in the world according to Deutsche Bank's list for 2025, making it more expensive than Paris, Sidney and Berlin but still less costly than New York, Hong Kong, Zurich, Singapore, Seoul, Geneva and London.
According to the report that was published last month, the average cost of one square meter in Tel Aviv is $18,468 (62,237 shekels), slightly less than New York's $18,532 (62,435 shekels). An average 100-square-meter apartment in Tel Aviv would cost 6.2 million shekels to buy.
Bank economists explain the high cost of apartments in Tel Aviv, which continues to be more expensive than most American cities, is due to its relatively large population concentrated in a small area, and demand also is increased by a thriving hi-tech industry and cumbersome planning laws that take time.
Deutsche Bank found that prices went up 100% in the past five years, among the most extreme increases in the OECD.
Rent in Tel Aviv is also expensive, with the city ranked 18th in the world with an average cost to rent a two-bedroom apartment in the city center as high as $3088 per month (10,400 shekels), exceeding costs in Tokyo, Barcelona and Lisbon, but less expensive than New York where average rent costs are no less than $8,388 (over NIS 28,000).
Income in Tel Aviv is also relatively high, ranking it 23rd in the world after Zurich, Geneva, Luxembourg and San Francisco, with an average monthly income of $3,580.
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The Deutsche Bank's Purchase Power Index reveals that income in Tel Aviv was partially catching up with the rise in housing costs but it would still take a two-income household decades to earn enough to purchase an apartment in the city, much longer than other developed metropolitans, indicating a growing gap between income and the cost of housing.
An amalgamation of studies finally ranks Tel Aviv 10th out of the 69 most expensive cities in the world, taking into account the cost of housing, transportation, food and services as well as income, surpassing Paris, Dubai, Stockholm, Sidney and Berlin.