Mainland property buyers eye Tel Aviv amid Israel’s flourishing trade ties with China and Gulf peace deals

The expansion of trade and business relations with China is helping drive interest in Israeli real estate as Chinese firms deploy executives to Tel Aviv

Investors anticipate an uplift in property values as Arab states start to look for mansions and penthouses in Tel Aviv to house diplomatic missions, staff

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Chinese investors are showing a keen interest in Tel Aviv’s property market. Photo: Xinhua

Published: 10:07am, 30 Mar 2021Updated: 10:07am, 30 Mar 2021

China’s growing investment and trade ties with Israel is spurring demand for real estate in Tel Aviv, with inquiries from mainland buyers for homes in the city rising significantly, property agents said.

Inquiries from China increased from nine in the fourth quarter of 2019 to 160 in the same period last year, according to the UK-based Beauchamp Estates, which has a presence in the Middle Eastern country.

Most of these inquiries were for ultra prime property markets in Tel Aviv’s popular districts and affluent beachfront neighbourhoods like Herzliya Pituach, the agency said, adding that there was also interest in commercial property and land for property development.

“Buyers from mainland China have been active in the Israeli market for more than a decade, but we have never seen such a sudden and meteoric increase in activity,” said Matthew Bortnick, director at Beauchamp Estates Tel Aviv.

A £22 million penthouse at HaYarkon 29 in Tel Aviv is being marketed by Beauchamp Estates. Photo: Handout

The country’s efficient Covid-19 vaccination programme is likely to further burnish its appeal as an investment destination as infection rates drop, which could pave the way for the full reopening of its economy. Israel’s recent peace deals - the Abraham Accords - with Arab states like Bahrain, the United Arab Emirates, Morocco and Sudan are also likely to bring in more investment, following the normalisation of relations with these former foes.

Investors anticipate an uplift in rent and property values as Arab governments start to look for mansions and penthouses in Tel Aviv for use as diplomatic buildings and residences for ambassadors and diplomatic staff.