Tel Aviv luxury apartments set new price records

Newly built homes sell for average NIS 200,000 per square meter, shattering previous records for residential values

David Promenade Residences, Tel Aviv shoreline (courtesy Holland Real Estate)
David Promenade Residences, Tel Aviv shoreline (courtesy Holland Real Estate)

A new price record for a Tel Aviv luxury apartment may just have been set this year at the David Promenade Residences, with the sale of two units for roughly $26 million each.

The two families who purchased them paid NIS 88 million each for 438 square meters (4,715 square feet) of living space and a terrace measuring 145 square meters (1,561 square feet) that can fit a swimming pool, according to Holland Real Estate and Neot Shiran, Tel Aviv, the agencies that closed the sale.

The two-story penthouses are located on the 24th and 25th floors, and feature six-meter-(20 foot)-high living room ceilings and panoramic sea and city views. They were purchased in shell condition and the families will complete them to their own original specifications, the agency said.

The total price tag for both units amounted to NIS 176,000,000 ($51,187,000).

The price represents a cost per square meter built of NIS 200,000, excluding finishes and purchase costs, which easily tops the previous “normal luxury price” this year of NIS 130,000 to NIS 140,000 set by The Residences at Mandarin Oriental Tel Aviv, next to the what used to be the Dolphinarium.

The 28-story David Promenade Residences on the Tel Aviv coast stands right next to the five-star David Kempinski Hotel, which opened earlier this year, and directly across from the waterfront. Residents can tap into perks provided by the hotel next door, including the restaurants, the spa, and room service to their apartments.

David Promenade Residences on Tel Aviv Beach (courtesy Holland Real Estate)

Backed by the Nahal Group, the David Promenade Residences was designed by Feigin Architects, an Israeli firm that has been in business since 1963 and has a long list of prominent projects. These include the David InterContinental Hotel in Tel Aviv, the Waldorf Astoria in Jerusalem, the King David Tower in Tel Aviv, the David Dead Sea Resort & Spa Hotel, the Grand Court Hotel in Jerusalem, the Royal Beach hotel in Eilat, and the Ice Park and Mall in Eilat.

The two units are not the only apartments in the building to have sold recently.

Holland Real Estate and Neot Shiran, which brokered the sales of the tower, said that four residences in the tower were sold for a combined $72,700,000 over the past few months.

For those looking for more modest prices, since June, a finished apartment of 208 square meters plus a 70 square meter balcony (2,239 square feet plus 753 square feet) was sold for NIS 30 million ($8,725,000) and another apartment of 158 square meters (1,701 square feet) in shell condition sold for almost NIS 22 million ($6,400,000).

Penthouse terrace at the David Promenade Residences (courtesy Holland Israel)

In 2021, a two-floor penthouse on the 20th and 21st floors of David Promenade Residences measuring 680 square meters of living space (7,319 square feet) as well as substantial terraces was sold in shell condition for NIS 108,000,000 ($31,410,000). This represented a “mere” NIS 158,824 ($46,191) per square meter of living space. And still for sale in the block is a three-bedroom apartment of 180 square meters (1,938 square feet) plus a 62 square meter (667 square feet) balcony on the 13th floor, priced at NIS 33,000,000 ($10 million).

A 13th-floor apartment in the David Promenade Residences, for sale via Holland Real Estate and Neot Shiran (courtesy Holland Real Estate)

Also rising fast on behalf of potential luxury apartment owners in Tel Aviv, Port TelAviv in the Old North is offering starting prices for a one-bedroom apartment for NIS 8,275,000 ($2,406,671), for 76 square meters (818 square feet) with 13 square meters of balcony (140 square feet) designed by star architect Ilan Pivko.

On Rothschild Boulevard, new apartments are being completed in the Kempinski-linked Villa Rothschild Project, which combines traditional low-rise design with a luxury villa. And the property being developed at what used to be the Sde Dov Airport also promises to deliver a range of luxury housing in the years to come.

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