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Tel Aviv has been named the world’s eighth most expensive city to purchase residential real estate, according to Deutsche Bank’s annual Mapping the World’s Prices report, which analyzes costs in 69 of the globe’s most influential cities.
According to the report released late last month, the average cost of a home in central Tel Aviv has reached $18,469 per square meter. That places the Israeli metropolis just behind New York ($18,532) and ahead of major cities like Paris and Los Angeles.
Topping the list was Hong Kong, where residential property in city centers averages a staggering $25,946 per square meter. Other cities ahead of Tel Aviv include London ($20,953), Geneva ($21,491), Seoul ($22,875), Singapore ($22,955), and Zurich ($23,938).
Deutsche Bank attributed Tel Aviv’s high ranking to a mix of factors including limited land availability in Israel, restrictive zoning laws, and the rapid expansion of its tech sector, which has driven up demand for housing.
“Tel Aviv is the economic heart of a small, densely populated country,” the report noted. “The tech boom and investor interest have only pushed property prices further.”
The designation comes as Israeli citizens grapple with an ongoing housing affordability crisis. Since 2012, average property prices in Tel Aviv have surged by 110%, up from $8,795 per square meter just over a decade ago.
The dream of homeownership is increasingly out of reach for Israel’s middle class, despite repeated pledges by successive governments to tackle the crisis.
While Tel Aviv ranks eighth in terms of purchase prices, it fared better in rental cost rankings. It placed 21st for one-bedroom apartments at $1,667 per month and 22nd for three-bedroom rentals at $3,088. In comparison, New York remains the most expensive city for renters, with monthly costs hitting $8,388 for three-bedroom apartments.
Beyond housing, Israel also saw mixed results in Deutsche Bank’s quality of life index. Tel Aviv ranked 28th globally—an improvement from its 2020 position—thanks in part to relatively strong scores for safety (17th), healthcare (20th), and climate (14th).
However, it ranked poorly in affordability indicators, such as property price to income ratio (60th) and general cost of living (60th).
The report also revealed that Tel Aviv is one of the most expensive places in the world to purchase a car. A standard Volkswagen Golf costs $47,599 in the city, placing it third globally behind Copenhagen and Singapore.
Israel continues to experience some of the highest living costs among developed nations. A combination of high interest rates, rising utility bills, and recent tax hikes aimed at offsetting defense-related spending during the ongoing conflict with Hamas has further strained household budgets.
With housing costs now exceeding global benchmarks, Tel Aviv’s affordability challenges are increasingly drawing attention—both domestically and internationally—as the city struggles to balance growth with livability.