• Tel Aviv

  • Thursday, February 15, 2024 at 5:28 AM
    Last Update : Friday, February 16, 2024 at 9:35 AM

Soaring Residential Rents in Tel Aviv Amid Ongoing War in Gaza

(AWP) - Tel Aviv is witnessing an increase in residential rent prices with a large influx of Israelis flocking to the city after being evacuated from settlements in the Gaza Strip “envelope” and border areas near Lebanon over four months ago, following the outbreak of Israel’s war on the Strip.

Tel Aviv landlords have taken advantage of the increased demand to raise rents by as much as 20% in some areas.

Lawyer and real estate company owner Elimelech Crystal says that rental costs in Tel Aviv have been on the rise over the past few years, without falling, even in periods of deep financial crisis.

He said, “Demand is higher in the city centre and around it. Everyone wants to be in the downtown area; everyone wants to be in Tel Aviv. Since 2004 to 2005, prices in Tel Aviv have been continuously rising. Even when the major [financial] crisis happened from 2008 to 2010, the high prices stopped at a certain point but did not decrease.”

He added, “Tel Aviv is a city desired by everyone. Everyone wants to live here and rates will continue to rise as there is not enough land. Israel is a small country, and Tel Aviv is in a constant state of alert, and the city provides everything the residents need, so there will always be a demand for real estate here, and to this day prices in Tel Aviv have not fallen.”

Crystal noted that deals to construct new housing projects have stopped since the beginning of the war on Gaza on October 7.

He said, “Prices have not dropped even during the war, and there are not many real estate deals. No one is making deals at the moment, but prices are stable. The war has certainly affected real estate in Israel a lot.”

Crystal continued, “We see two paths now. For example, the southern area has been vibrant in terms of development and construction over the past year and a half. I'm talking about the settlements – the paths leading to Ofakim, Ashkelon, and those areas. When real estate started to boom there were many new projects, but today we hear that everything has stopped.”

The Israeli government has been responsible for housing displaced people from the Gaza border areas, and with no sign of the war ending soon, the associated costs are tied to the length of their stay, which may be prolonged as fighting continues.

Israeli newspapers reported that the number of people evacuated from the settlements surrounding the Gaza Strip and from the border with Lebanon reached about 140,000 people, but army figures issued at the end of October indicated that the number was about 500,000 people.