Tel Aviv is building fewer large apartments suitable for families, recent real-estate surveys have shown and has increased construction of more affordable 2-bed flats amid soaring prices. Apartments with 4 and 5 bedrooms were mostly being built in Lod, where the cost of an average family home was much lower, according to the Central Bureau of Statistics, (CBS) review of new builds in the first quarter of 2024.
The rising interest rates and decline of the high-tech sector are the contributing facture to the change," said Dan Kuchinovsky, who conducted the survey. "The target buyer pool has decreased, and the market was responding accordingly."
CBS said that 3-bed units were most in demand in all cities around the country and constituted 35% of all new builds in Q1 compared to 33% during all of 2023.
Smaller apartments in Tel Aviv exceeded the new construction figures in Jerusalem where such units were in great demand in recent years. The city also saw an increase in on-bed apartments being built.