May 2026
May was the strongest month of 2026 to date. Total luxury transactions in Tel Aviv exceeded 200 units for the first time since Q2 2022. Rental yields in Bat Yam and the Old North reached multi-year highs, attracting a new wave of yield-focused investors.
Luxury transactions in Tel Aviv (monthly record since 2022)
Bibian Group's Take
"We've been saying for two years that Bat Yam is the most undervalued coastal market in the Mediterranean. May's data is starting to prove it. Rental yields of 4.5–5.5% on new construction, with capital appreciation on top — that combination is very hard to find in any comparable market. We're seeing serious institutional interest now, not just individual buyers."
— David Bibian, Founder & Managing Director, Bibian Group
Bat Yam Spotlight
Bat Yam waterfront properties delivered gross rental yields of 4.5–5.5% in May, compared to 2.8–3.5% in central Tel Aviv. New construction projects in the area are 85–90% sold, with remaining inventory concentrated in premium upper-floor units. The municipality's NIS 800M infrastructure investment plan is proceeding on schedule.
Prices
City-wide Tel Aviv prices reached NIS 54,200 per sqm on average. The Old North premium over city average widened to 42%. Neve Tzedek boutique apartments (under 80 sqm) commanded a 55% premium per sqm over the city average, driven by scarcity and lifestyle demand.
New Construction Pipeline
Planning approvals for new residential units in the Tel Aviv metropolitan area rose 18% year-on-year in Q1 2026, according to the Central Bureau of Statistics. However, the construction pipeline remains insufficient to meaningfully address the structural supply deficit. Prices are expected to remain supported.
Outlook
What to Watch Next
June typically sees a slight seasonal slowdown as families focus on end-of-school-year activities. However, the underlying fundamentals remain strong. We expect the Bank of Israel to hold rates in June, with a further cut possible in Q3.
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