Housing prices in Tel Aviv have reached a new high this year - rental prices rose by 9.5%

Since the beginning of the Corona crisis, it has been believed that mortgage rates will fall and that many will sell the apartments they own so that the supply of apartments will be large. However, data from the Central Bureau of Statistics for CBS published at the end of 2020 indicate that housing prices in Tel Aviv have reached a new high this year, and since 2017 there has been a steady rise in housing prices.
Data from the Central Bureau of Statistics show that there has been a 9.5 percent increase in the last three years in the rental prices of 2.5-3 room apartments in Tel Aviv and since the beginning of the corona until the end of 2020, rental prices of apartments in Tel Aviv have risen by 1.2 percent.
Projects such as the price per occupant and the like have not led to a drop in apartment prices in Gush Dan, while in the Western Galilee it is possible to purchase a luxurious private house for less than NIS 1.8 million. In a conversation I had with an expert and owner of a real estate investment company in Israel and abroad, we understood that the phrase "real estate investment" means the same as investing in a study fund, shares, etc. There are significant differences between investing in one hedge fund and investing in a fund. Solid training or in PKM with 0% interest, as well as in real estate types.
The center of the country and Greater Tel Aviv are still the main economic engine of the real estate market. It is true that there are expensive areas in other large cities, but it does not seem that a change in trend is expected soon. Young people still prefer to live in Tel Aviv. "As Silicon Valley reports, but it is a process that will take years. Until there is a suitable alternative to Tel Aviv, it will take a long time. Add to that the increase in life expectancy, the shortage of construction areas, the constant pace of construction Cheap real estate and selling at a profit, creates a situation where there will always be business and private interests to maintain high real estate prices.
Whoever is short-handed to buy an apartment, will rent. The rental apartments market has broken out and there is no regulation, so there will always be a demand for rental apartments. Those who can buy an apartment for themselves will do so, others will buy a property for the purpose of renting it while renting elsewhere. That is, it produces a perpetually vigilant market. No matter how we look at it, Israel is a small country and the culture of exile and the desire for our own home only strengthen the market.