Luxury Towers Nearing Completion in Tel Aviv's "State Square"

The State Square Towers project, one of Tel Aviv's largest and most complex recent constructions, is nearing its final stages. After over 70 years since landowners began acquiring rights to the area, the project is expected to receive occupancy permits by the end of 2026. Apartment deliveries will commence gradually in the first quarter of 2027. The development, initiated by approximately 250 landowners who are effectively the project's developers, comprises 453 luxury apartments across three 40-story towers. The total construction spans about 180,000 square meters, with the project itself occupying 50 dunams, alongside a park and public spaces. The city of Tel Aviv received 15 dunams, on which a ten-story community center, a school, and three kiosks were built. Beneath the towers are three basement levels and a large parking garage with over 1,600 spaces. Electra and Ashtrom were selected to execute the project, with their combined contract valued at 1.4 billion shekels. The total construction cost is estimated at 4.3 billion shekels, financed by a 2.05 billion shekel credit facility from Bareket. Concerns exist about a potential market glut if many apartment owners decide to sell simultaneously, especially given a reported slowdown in sales and a 10-15% price decrease in the area. However, real estate appraiser Assaf Gastfreund believes that even a mass sale wouldn't collapse the market and could even boost the area's value long-term. Many original landowners are expected to delay sales for at least a year post-occupancy to benefit from reduced capital gains tax, a process that can take between six months and two years.