Tel Aviv ranks 8th most stable real estate market globally

The Israeli city joins San Francisco, Dubai, and other major urban centers in demonstrating market resilience through balanced rent and purchase price trends.

By JERUSALEM POST STAFF JANUARY 15, 2025 02:48

Apartment for sale in Jerusalem (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

Tel Aviv has been ranked the eighth most stable real estate market in the world, a new study conducted by Deluxe Holiday Homes revealed.

The study focused on rent prices for 1-bedroom apartments in city centers and surrounding areas, as well as apartment purchase prices per square meter.

While rents in Tel Aviv increased, the study found that property prices dropped by over 10% over the past two years, suggesting the market is adjusting to shifting economic conditions.

Buenos Aires ranked first due to the city’s strong demand for property ownership, as well as a nearly 15% drop in rent prices.

Only two US cities made the list; San Francisco was in second place, and Seattle was fifth. In both cities, rent has risen while property prices have declined. 

The top ten cities with the most stable real estate markets. (credit: Deluxe Holiday Homes)

According to the study, this could be because the market is adjusting to post-pandemic trends.

The key factor the study used for ranking was the minimal change in both rent and property prices over a three-year period, a category in which Dubai – ranked third – stood out, with no property price change over the past two years, and less than 1% increase in rent.

Resilience in the face of change

"The most stable real estate markets tend to show minimal fluctuations in both rents and property prices. Markets with steady property prices and modest rent growth exemplify resilience in the face of global economic shifts,” a spokesperson from Deluxe Holiday Homes explained.

“Conversely, areas with significant rental increases paired with property price drops reveal evolving trends where rental demand plays a dominant role. This underscores the importance of monitoring both rent and purchase price stability when assessing long-term investment opportunities."