The Apartment Market in Tel Aviv – Real Estate Agencies Point of View

There are fraudulent dealings – closed-in verandas or kitchens are transformed into residential units, small apartments divided into even smaller units of 18-20 sq.m, providing good money for the property owner, much more than from an original apartment not divided up.
Many Real Estate agents and property entrepreneurs maintain this trend must be restricted. Aside from an ethical aspect, life quality of other residents is affected in these apartment buildings where divided-up units lead to over-populated buildings, over-use of the elevator in relation to number of apartments, lack of parking space and decrease of real estate value of other apartments in the building.
This causes decline in sale and market value of apartments in these buildings. This is another reason for the raised voices from residents in this type of apartment building.
Tel Aviv municipality, agents and property entrepreneurs can tell you that the above-described fraudulent dealings are illegal. In practice, when residents complain, the municipal law enforcement department takes action in cases of dividing apartments . If the building is still in the process of being constructed it is simpler to demolish them; buildings that have been in the market for several years are more difficult to deal with.
In general, do not deal with apartments of this type.
Most apartments are rented directly from the apartment owner: i.e. the renter.
Besides this, there is not much profit for agents in a deal like this when compared with the profit from sale of a new apartment. Many agents companies prefer to seize exclusive and imposing projects from which they earn fat commission.