Real Estate Boom – Extention of Florentin Neighborhood
If you have ever visited the neighborhood of Florentin in Tel-Aviv, Israel, it is clear that the city is experiencing a real estate boom. This is due to a variety of causes that we will aim to discuss in this article.
One of these causes is directly related to money: simply, the affordability of the Florentine neighborhood compared to the surrounding area. A younger population driven from their previous neighborhoods due to rising costs is likely to choose Florentine. Although real estate market prices are growing daily in Tel-Aviv, the surrounding areas are much worse, leading to an influx of new residents in Florentine.
Florentin: The Neighborhood of Artists
For those who don’t know, Florentine is a hub of artistic and musical talent. Artists, ranging from clay pot makers to street graffiti artists, breathe life into this historical city. Once dilapidated, the Florentin neighborhood is now repairing, renovating, and renewing its structures and nightlife. This is thanks in part due to a governmental campaign aimed at reviving cities that are in despair.
Florentin offers a wide range of nightlife, social activities, and specialty shops. These aspects, combined with lower prices than the surrounding neighborhoods, have had a major effect on the city’s growth. They make for a desirable city that is enticing to potential new residents.
With Growth Comes Pain
There are many upsides of the real estate boom in Tel-Aviv. Not only have property values risen dramatically, so has the demand for housing. Since much of the housing available in Tel-Aviv is of older buildings without modern amenities, as well as often having structural issues, most residents want newly constructed housing.
This is where the pain of growth is obvious: due to the heavy demand for new housing, and a lack of large-scale housing projects, inflation and prices are at an all-time high. While this is good for current owners, the housing boom is also raising the costs of a once inexpensive neighborhood.
According to an article in the Wall Street Journal, “…property prices in Tel Aviv have increased by 84% since 2008, rising 10.19% last year alone…” That is an astronomical rate of price increase.
Worth The Struggle
It is apparent that despite the continued rising costs of real estate, people still want to live in Florentine. While the costs are rising, they are still lower than other neighborhoods in the surrounding area. For some, these prices are affordable, while others are willing to sacrifice other things in order to be able to live in Florentin.
The real estate market in Tel-Aviv, and especially Florentine, is currently booming. That is the only way to describe the incredible rise in the cost of housing. The end is not in sight for now. The city continues to experience a growth of both real estate pricing as well as an influx of a young and artistic population willing to pay the price of admission. They find it well worth it, and so do we.