Tel Aviv has been ranked as the world’s eighth most expensive city in terms of buying residential real estate in Deutsche Bank Research Institute’s ranking of the world’s 69 most important cities for global financial markets. In terms of quality of life, Tel Aviv was ranked 28th.
The real estate rankings are based on the price to buy a home in the city center. Deutsche Bank’s researchers found that the average home in Tel Aviv cost $18,469 per square meter in the city center, just below New York ($18,532) in seventh and well ahead of Beijing ($15,090) in ninth and Shanghai ($14,767) in tenth. Hong Kong was the world’s most expensive city for residential real estate at $25,946 per square meter, followed by Zurich ($23,938), Singapore ($22,955), Seoul ($22,875), Geneva ($21,491) and London ($20,953).
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Deutsche Bank mentions that in 2012 Tel Aviv prices were just $8,795 per square meter – a rise of 110% in 13 years.
In other housing rankings, Tel Aviv was in a more reasonable position in terms of cost. According to the data, the monthly rent for a three-room apartment in the city center is $3,088 (NIS 10,336), ranking 22nd out of 69 cities surveyed. The cost of monthly rent in New York is $8,388 putting it at the top of the ranking. The cost of rent for a one-room apartment in Tel Aviv ($1,667) ranks it 21st out of the cities surveyed ($1,667).
Standing out for cost of living
In Deutsche Bank’s index that examined the quality of life in these cities, Tel Aviv ranks 28th out of 69, behind cities such as Madrid, Doha, Prague, and Tokyo. This index takes into account criteria such as safety (Tel Aviv ranks 17th), health (20th), time in traffic jams (23rd) and pollution (30th). What lowers Tel Aviv’s ranking in this index are mainly the cost of living index (60th) and the cost of housing relative to income (60th).
The comprehensive report finds that Israel “stars” in another issue: the cost of living. According to the purchasing power parity price index, Israel ranks 2nd among the 48 countries examined (in some countries, several cities were examined). Switzerland is in first place, followed by Israel, and the US. Israel has “maintained its position” in this area since 2020.
In the index for a three-course dinner for two diners at a mid-range restaurant, Tel Aviv ranks eighth out of the 69 cities examined. In the index, of a “cheap date” as defined by the study’s authors (a bottle of wine, a pair of jeans, a dress, 2 coffees, a meal at a restaurant, 2 movie tickets and 2 public transportation tickets), Tel Aviv ranks ninth, after Stockholm, New York, Copenhagen and Zurich, among others.
Published by Globes, Israel business news – en.globes.co.il – on July 7, 2025.
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