Tel Aviv Neighborhood Sees Stark Price Gap Between New and Old Homes

Recent real estate transactions in Tel Aviv's Revivim neighborhood highlight a significant price disparity between newly constructed apartments and older units. In June, a 53-square-meter, two-bedroom apartment in a new project at Tabenkin 34 sold for 2.96 million shekels, equating to approximately 55,923 shekels per square meter. In contrast, a 74-square-meter, three-bedroom apartment in a building from 1970 on Tirosh Street sold for 2.78 million shekels, or about 37,567 shekels per square meter. This represents a price difference of about 35% for newly built versus older properties.

Revivim, located in northeastern Tel Aviv, was primarily developed in the 1950s and 1960s as a housing project, characterized by low-rise buildings, mature greenery, and wide avenues. While adjacent neighborhoods have seen substantial price increases, Revivim has remained a relatively accessible option, attracting young families and investors. Urban renewal projects are introducing new apartments, including those at Tabenkin 34 and the Ensemble project.

Data from the Israel Tax Authority, as presented by Madlan, indicates a dual market. At Tabenkin 34, three small two-bedroom apartments sold between 48,700 and 55,923 shekels per square meter, with building completion expected in 2030. The Ensemble project saw a 164-square-meter, five-room apartment sell for 7.5 million shekels, or about 45,700 shekels per square meter. Older stock includes a three-room apartment on Tirosh that sold for 37,567 shekels per square meter, and a 122-square-meter, five-room apartment in a 2002 building on Karmei Dov that sold for 40,040 shekels per square meter.

Overall, 16 apartments were sold in Revivim over the past year. Asking prices on the market range from 3.69 million shekels for a 90-square-meter, four-room apartment to 5.48 million for a 136-square-meter, five-room unit. The neighborhood also includes single-family homes, with a 230-square-meter house listed at 9.5 million shekels.

Despite a general 3% decrease in Tel Aviv apartment prices over the past year, Revivim has maintained its relative position as one of the more affordable neighborhoods in the north of the city. The average apartment price in Revivim has remained stable at around 4.13 million shekels over the last year, with a slight cumulative decrease of about 3% over two years. The neighborhood is ranked 9 out of 10 on the socio-economic index, contributing to stable family demand. Advantages include its quiet atmosphere, low-rise buildings, greenery, proximity to employment centers, and lower entry prices compared to neighboring areas. However, most existing stock is over 60 years old, lacking elevators and safe rooms. The slow pace of urban renewal, with construction expected to continue until the end of the decade, presents challenges for those anticipating redevelopment.