A survey of Tel Aviv real estate in comparison with global real estate by Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) chief economist Dr. Michael Sarel found that Tel Aviv is the world's 11th most expensive city for real estate. 37 cities were analyzed with assistance from "Global Property Guide" data.
The survey found that a square meter in Tel Aviv costs on average $7,773 or NIS 3.5 million for a 120 square meter apartment.
According to the survey London is the most expensive city with a square meter costing $17,459 followed by cities in France, Switzerland, Russia, US, Italy, Sweden, Australia, Canada, Finland. Tel Aviv homes are more expensive than those in the costliest cities in Germany, Spain, Luxembourg and Australia.
Harel also sees home prices in Tel Aviv as 45% higher than they need to be due to Tel Aviv and Israel's unique circumstances, which include state monopoly on land, poor transportation planning, the high cost of building in Israel, the cultural and social preference in Israel for buying homes, and expected population growth.
Published by Globes, Israel business news - www.globes-online.com - on May 3, 2012
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