The average price of apartments in Tel Aviv is NIS 15,000 per square meter, according to an analysis of data for the past four months by AMG Financial Models Ltd. Tel Aviv apartments are 250% more expensive than in Rishon LeZion.
AMG says that Jerusalem is Israel's second most expensive city for apartments at NIS 11,000 per square meter, followed by Ramat Gan at NIS 9,500. In contrast, the average price per square meter for an apartment in Modi'in is NIS 8,000 (based on an apartment of 115 square meters).
AMG co-CEO Amit Kaminsky said, "Despite the fall in the dollar, apartment prices in high-demand areas are still high. Sellers set a minimum exchange rate or denominate prices in shekels. Prices in Jerusalem are unquestionably rising steadily. Although prices in Tel Aviv are more expensive, in terms of dollars per square meter, Jerusalem is approaching the level in Tel Aviv."
Kaminsky added that one factor boosting apartment prices in Jerusalem is absentee foreign owners. "In contrast to Tel Aviv, there are many absentee apartments in Jerusalem owned by people making only brief visits to the city. These expensive apartments are empty most of the year. These foreign residents are prepared to pay high prices for properties, pushing up prices across the board."
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008