Tel Aviv's State-of-the-Art "State of the Art" Project Nears Completion, Revealing High Price Tags
Translated & summarized from Maariv by baba
Tel Aviv's "State of the Art" project in Dizengoff Circle is nearing completion after over 70 years of planning, with apartment prices potentially reaching NIS 100,000 per square meter. Business owners have suffered from years of construction disruption but hope for revitalization with new residents. Original landowners hold rights to the apartments, with current prices ranging from NIS 8.5 to 14 million, and many owners are not expected to sell immediately.
The story in 6 lines · by baba
- Tel Aviv's "State of the Art" project is nearing completion after 70 years, with apartment prices potentially reaching NIS 100,000 per square meter.
- Business owners in Dizengoff Circle hope new residents will revitalize the area after years of construction disruption.
- Apartment prices in the project currently range from NIS 8.5 to 14 million, reflecting NIS 65,000 to NIS 80,000 per square meter.
- Hundreds of original landowners hold rights to the apartments, and many are not under pressure to sell immediately.
- Rental prices are estimated at NIS 25,000 per month, with significant maintenance fees.
- Market conditions upon delivery, including interest rates and security, will impact final prices.
After more than 70 years of planning, the controversial "State of the Art" project in Tel Aviv's Dizengoff Circle is nearing completion and occupancy. The massive development, spanning approximately 50 dunams and covering 180,000 square meters, includes residential towers, a public park with an artificial lake, and commercial spaces. While the real estate market is assessing potential sale prices, local business owners are anxiously awaiting the return of customers, hoping the influx of new residents and the park will revitalize the area after years of disruptive construction.
Business owners have faced significant challenges due to road closures, utility work, and a lack of parking, leading to a sharp decline in customer traffic. "It's a complete disaster," said one business owner named Daniel, who has seen his workload decrease despite working long hours. He expressed hope that the removal of construction barriers and the arrival of affluent residents will improve the situation, but also voiced concerns about potential rent hikes.
A unique aspect of the project is its ownership structure, with hundreds of original landowners holding rights to the apartments. The value of the right to an apartment alone has reportedly sold for NIS 6 to 8 million, with construction costs adding another NIS 5 million. Current apartment prices range from approximately NIS 8.5 to 12 million for smaller units (around 134 sqm) and NIS 10 to 14 million for larger ones (around 153 sqm), reflecting a price of NIS 65,000 to NIS 80,000 per square meter.
Experts suggest that many of the original rights holders, often financially stable families, will not be under pressure to sell immediately upon receiving their apartments. Rental prices are expected to be around NIS 25,000 per month, with maintenance fees of NIS 4,000-5,000. The final market conditions upon delivery, including interest rates, taxes, and the security and political climate, will ultimately influence prices.
While some expect a few dozen apartments to be put up for sale, project co-founder Rafi Ben Yaakov believes there won't be a rush to sell, as many owners intend to live in their units, rent them out, or pass them on to heirs. He described the project as "state of the art" and unique in Israel, with potential for prices to reach up to NIS 100,000 per square meter if the market returns to previous demand levels.
