Residential real estate in Tel Aviv is more expensive than most European cities, survey finds
July 19 (UPI) – Housing in Tel Aviv, Israel is more expensive than all but one European city, according to a recent real estate survey.
Deloitte’s real estate index, Overview of European Residential Markets, found Tel Aviv’s residential real estate market to be more expensive than all but Paris.
The audit firm examined the housing markets in 62 cities to come to a conclusion. Israel is the only Middle East-based market to be included.
In Tel Aviv, the average price per square foot was $ 12,184, up 5.6% from 2019. By comparison, prices in Paris were $ 15,181 per square foot.
The only city included in the study to see a drop in house prices was Rome.
Austria leads the country with the highest cost per square foot. Hungary experienced the strongest growth in a year. Romania had the highest interest rates.
The review’s authors said the data will change as they expect a major downturn in the economy.
“The eurozone economy is expected to decline 6.3%,” the authors wrote. “The slowdown will be most profound in countries that have been hit hard by the pandemic – Italy where a drop of 9.1% is expected and Spain with an expected drop of 8.0%. The German economy , the largest trading partner of the Czech economy, is expected to decline by 7.0%. ”
The authors also noted that the labor market can dramatically alter housing prospects.
“The trend towards improving the labor market situation is over,” the authors wrote. “The labor market situation will worsen further due to a deep recession. The unemployment rate in the EU will drop to around 10% this year, from a record low of 6.3% last year. Relief can be expected next year provided a next wave of the pandemic does not arrive. ”