Finding a “good deal” on a new apartment in Tel Aviv’s notoriously expensive real estate market is challenging, but not impossible. It requires a strategic approach, flexibility, and a deep understanding of the market. Rather than just finding the cheapest apartment, a good deal means getting the best possible value for your money.
Here are the best strategies for finding a good deal on a new apartment in Tel Aviv.
1. Look in Neighborhoods Undergoing Gentrification
The biggest price differences are between established, prime neighborhoods and those on the cusp of transformation. Instead of focusing on the Old North or Rothschild, explore areas in South and East Tel Aviv.
- Areas to Watch: Neighborhoods like Florentin, Shapira, Yad Eliyahu, and the areas around the new light rail lines are seeing massive investment and urban renewal. Buying here before the transformation is complete can lead to significant long-term appreciation.
- The Trade-off: You might have to compromise on the immediate environment—perhaps dealing with more construction or fewer established amenities—but the entry price will be considerably lower than in prime central Tel Aviv.
2. Buy “On Paper” in the Pre-Sale Phase
Developers often offer the best prices during the “pre-sale” (pre-seil) phase of a project. This is when they are trying to secure enough sales to obtain financing from the bank.
- Early Bird Discount: Buying at this very early stage, sometimes before the bulldozers have even arrived, can secure you a price that is 5-10% lower than the prices offered later in the construction process.
- Greater Choice: You also get the best choice of apartments, including preferred layouts and floors, before they are snapped up.
- The Risk: The primary risk is time. Delays are common in Israeli construction, so you need to be prepared for a flexible move-in date. Ensure your lawyer thoroughly vets the developer’s reputation and the project’s guarantees.
3. Target TAMA 38 and Pinui-Binui Projects
Urban renewal projects offer a unique opportunity. TAMA 38 involves reinforcing and adding to an existing building, while Pinui-Binui involves demolishing an old building and constructing a new, larger one in its place.
- Buying from an Owner: Sometimes, an owner in a building slated for TAMA 38 will sell their old apartment along with the rights to the new, expanded one. You could buy the old unit at a price below the market rate for a brand new apartment and then wait for the project to be completed.
- Buying from the Developer: Developers in these projects will also sell the newly created apartments. Because they are often smaller-scale, boutique projects, you may find more room for negotiation compared to a massive high-rise development.
4. Be Flexible and Ready to Negotiate
Even in a seller’s market, there can be room for negotiation.
- Look for Inventory Units: If a developer has only a few apartments left in a nearly completed project, they may be more motivated to sell to close out the project. These are often less desirable units (e.g., low floor, odd layout), but the price may be negotiable.
- Negotiate on Terms, Not Just Price: If the developer won’t budge on the price, try negotiating for other value-adds. Ask for upgraded kitchen cabinets, better tiles, or the inclusion of air conditioning units at no extra cost. This can save you tens of thousands of shekels.
By combining these strategies—targeting up-and-coming areas, buying early, exploring urban renewal projects, and being a smart negotiator—you can significantly improve your chances of finding a good deal on a new apartment in Tel Aviv.
