While in Tel Aviv the price of a square meter built on the beach reaches between NIS 120,000 and even NIS 250,000 per square meter, in Ashkelon and Nahariya a spacious sea-facing apartment can be obtained for NIS 2 million. Real estate on Herzliya’s coastline is the most expensive in the country, and in Haifa, a sea view is not considered to be a big deal.
As elsewhere in the world, in Israel, a sea view or physical proximity to the ocean in residential apartments increases demand, and consequently also the price of the property. However, the degree of influence of the landscape on the value of a sea-facing apartment is not the same in every city. While in some cities the value of property close to the coastline may jump dramatically or even double in value, in other areas, the effect of proximity to the sea may be expressed in an addition of no more than 10% or 20% to the value of the property.
There are two main parameters that affect the value of a property in relation to its proximity to the sea. The first is the level of demand and prestige of the area itself. Thus, in Tel Aviv, for example, the value of an apartment on a coastal line may double, or even more than double, the value of an identical apartment in another location in the city, in Ashkelon, located in the southern coastal strip of the Mediterranean Sea, the effect of a sea view will be minor and will only reach up to 20%, at most.
The second parameter is the rarity of the landscape. In flat coastal cities, only buildings on the first or second waterfront line will have sea views and will therefore be priced accordingly. But in mountainous towns built on the hillside, sea views are almost a given. The classic example of this in Israel is the city of Haifa, built on the Carmel, where a view of the sea is really not a big deal, and characterizes even many of the city’s cheaper neighborhoods. Paradoxically, the Haifa market was built in such a way that the more prestigious areas are built on top of the mountain and at a great distance from the shore, while the neighborhoods on the slopes of the mountain and adjacent to the beach such as the lower city and Bat Galim are the poorer. But this is the exception, which is not indicative of the rule.
Israel’s Golden Mile” coastline of central Tel Aviv
If the “Golden Mile” of the entire Israeli real estate market can be defined, it is the coastline of central Tel Aviv, bounded by the Yarkon River bay in the north to Jaffa in the south, along Hayarkon and Herbert Samuel streets. The price of a built square meter for residential use in this area ranges from NIS 100,000 in an old building that needs renovation to 160,000-170,000 square meters in a new luxury tower. That’s more or less double the price compared to similar properties in the quality areas of downtown that aren’t on the waterfront.
Recently, a number of deals were signed in the luxury Mandarin Oriental Tower developed by Herzl Habas, reflecting the acceptable price level in the area. A 118-square-meter apartment on the 24th floor of the tower (out of 25 floors) was purchased in May for NIS 18.86 million, reflecting NIS 160,000 per square meter. On a lower floor of the same tower, a 70-square-meter apartment was sold in June for NIS 8 million, reflecting a value of “only” NIS 114,000 per square meter. In contrast, an old second-hand two-room apartment with an area of 47 square meters on the second line to the beach was sold in the same area for NIS 3.14 million, reflecting a value of NIS 67,000 per square meter.
North of the Yarkon River, the Nofey Yam neighborhood has been built in recent years and is also located on the coastline. Recently, a 6-room cottage with a built area of 260 square meters and a 40 square-meter garden on the first line to the sea was sold for NIS 11.35 million.
Those looking for a sea-facing apartment at a more popular price in the same area can travel a short distance to Bat Yam, Tel Aviv’s southern neighbor, where the “Park HaYam” is currently being built – a new high-rise neighborhood near the beach. The neighborhood has a high supply of 5-room apartments for NIS 4 million, and 4-room apartments for NIS 3-3.5 million.
Herzliya Pituach — Israel’s most expensive residential neighborhood
North of Tel Aviv lies Herzliya, which also has a long coastline. However, unlike Tel Aviv, Bat Yam, or any other city that we will deal with in this article, construction on Herzliya’s coastline is not urban in nature, but rather, rural. This is the neighborhood “Herzliya Pituach”. The attractive combination of its location in Gush Dan, together with the beach and the fact that it consists of detached houses, some of them on plots of several dunams, has made it the most expensive residential neighborhood in Israel.
The price range is wide, influenced by the area of the lot and the level of proximity to the sea. In recent years, a number of homes have been purchased there at outrageous prices by world leaders. These include the purchase of the American ambassador’s home by the late businessman Sheldon Adelson in 2020 for NIS 230 million, as well as another deal that involved the purchase of a 9.5-dunam plot for NIS 226 million by Russian-Jewish oligarch Roman Abramovich. At the end of 2022, another plot in the neighborhood was purchased for NIS 173 million. The more popular properties in the neighborhood are semi-detached cottages on a half-dunam plot, which can be purchased at a price range of NIS 10-20 million.
Netanya — a favorite destination for foreign residents
Another city known for its attractive coastline is Netanya. In this city, the bulk of the residential real estate market along the coast can be divided into two main parts: the first – along the urban promenade, north and south of the city’s main business street, Herzl Street, which stretches from the shoreline to the coastal road (Route 2), and the second is the new high-rise neighborhood “Ir Yamim” in the south of the urban coastline.
The price range in this area, also known as the “hotel complex,” ranges from NIS 30,000 to NIS 50,000 per square meter, depending on the age and prestige of the project. Two deals for the purchase of 3-room apartments of 84 square meters were recently signed in a new project in the area, for NIS 3.8 million each, a price reflecting a value of NIS 45,000 per square meter.
In the Ir Yamim neighborhood, the price range is also high, depending on the parameters of the height of the apartment, and the quality of the view to the sea – whether it is full or partial. Last May, a deal was signed at an impressive price, when a 5-room apartment with an area of 150 square meters and a balcony of 24 square meters was sold for NIS 8.1 million in the Briga Towers project by American buyers. However, apartments can also be found in the neighborhood at much lower prices, with the average price for a 4-room apartment in the neighborhood being NIS 3.2-3.3 million.
Sea-facing opportunities in the periphery
The most affordable prices for the possibility of living close to the coastline are offered by the Israeli-northern and southern periphery.
Ashkelon, on the south of the coastline, and only an hour’s drive from Tel Aviv, has grown rapidly in recent years, and the development does not skip over its coastline, where a luxury market is developing. Recently, the construction company Efgad reported the execution of the most expensive residential transaction in the city’s history, when it sold a sea-facing penthouse apartment on the 22nd floor of a tower on the first line to the sea for NIS 7.55 million. The 6-bedroom apartment is 188 square meters in size and has a 115 square meter balcony attached to it.
In another Euro Israel tower, two 5-room apartments with the same area of 130 square meters were sold, one for NIS 2.6 million, reflecting a value of NIS 20,000 per square meter, and the other for NIS 4.3 million, reflecting a value of NIS 36,000 per square meter, with the main difference between the two apartments being the floor. While the more expensive one is located on the 20th floor, The cheaper one is located on the 5th floor.
Another project that sea lovers should pay attention to is the Achziv project, which is currently being built north of the northern city of Nahariya and is named after the famous beach and nature reserve nearby. Recent deals for the purchase of 4-room apartments were signed for NIS 2-2.2 million, and recently the developers announced the start of marketing another phase of the project, at marketing prices starting at only NIS 1.6 million. This may be the cheapest deal today to buy a beachfront property in Israel.
Interested in purchasing a sea-facing apartment in Israel? Whether you’re purchasing a vacation apartment or retirement residence, making a financial investment, or thinking about Aliyah, drop us a line, when you’re ready to talk. Whatever the reason, Buyitinisrael!