When we think about the luxury real estate market, names like New York, London, or Paris usually come to mind. Yet in recent years, Tel Aviv and Jerusalem have become legitimate players on this stage, with prices approaching global standards but still leaving a favorable cost–benefit ratio for buyers.
More and more international buyers, particularly Jews from the diaspora, are showing interest in the market of Israeli luxury real estate. The price per square meter is only part of the story. There is also a unique sense of connection to the land, a different character, and returns that combine both financial stability and cultural value. But is that enough to compare with New York, Paris, or Toronto? Let’s dive deeper.
Tel Aviv vs. the World: Not Always the Closest, but Often the Smartest Choice
According to Deutsche Bank’s 2025 report, Tel Aviv ranks eighth among the most expensive cities worldwide for buying a home, with an average price of around $18,469 per square meter. This places it close to New York, at $18,532 per square meter.
However, when compared to luxury districts in Paris, where prices hover around $14,286, it becomes clear that Israel offers a stronger cost-to-value balance, coupled with high-quality services and infrastructure.
For Jewish buyers, it’s not only about the financial aspect: the investment reflects a dual settlement – both spiritual and economic – while maintaining a lifestyle standard comparable to the West.
Currency Exchange and Return: More Significant than Raw Prices
Recent studies indicate that during periods when the shekel weakens against the dollar or euro, a significant window of opportunity opens for foreign buyers. A strong foreign currency allows them to purchase prime Israeli properties at more favorable converted rates.
At the same time, real estate prices in Israel rose steadily in 2024, with an increase of over 7.8% between April 2024 and April 2025 across several regions. In Tel Aviv, the growth was even sharper, at 10.6% in just a year and a half.
This means buying now not only saves due to exchange rates, but also positions buyers ahead of further price hikes – especially for long-term investors who seek enduring value rather than quick flips.
Jerusalem or Tel Aviv?
Jerusalem has been showing an even faster growth rate in the luxury market than Tel Aviv. For example, there was an 11.9% increase in the price of four-room apartments, compared with only a minimal 0.2% rise in Tel Aviv.
The average price per square meter in Jerusalem stands at around $11,100 – still significantly lower than the $18,469 in Tel Aviv. Yet what truly matters here is not just the price, but the potential. With renewed infrastructure, cultural centrality, and growing municipal investments, Jerusalem offers a rare combination of meaning and long-term appreciation.
Looking Ahead: Stability and Deep-Rooted Identity
The Semerenko Report points to an Israeli market that often shows resilience against global uncertainty, with an overall increase of about 7.5% between December 2024 and January 2025.
Meanwhile, Tel Aviv maintains its high position among the world’s most stable real estate markets, driven by a unique type of demand: long-term commitment, the intertwining of identity with investment, and the recognition of Israel as a future home.
Conclusion
Luxury real estate in Israel offers far more than square meters at a given price; it represents a connection between heritage and financial assets. With prices still lower than those in cities like New York or Paris, it delivers emotional value, economic resilience, and the promise of lasting worth. Tel Aviv and Jerusalem exemplify how luxury real estate need not always be the most expensive – sometimes it is simply deeper, more meaningful, and more relevant than ever.
