Neve Ofer, Tel Aviv.
The Honest Guide from the Tel Aviv Property Index
Neve Ofer, still widely called Tel Kabir, is Tel Aviv's southernmost corner: a working-class estate on the Holon border that is being rebuilt tower by tower. It is one of the cheapest parts of the city per metre, and the discount is pricing in thin local services, a lingering stigma and years of construction.
Where it is
Neve Ofer sits at the south-eastern tip of Tel Aviv-Yafo, where Jaffa meets Holon. Holon lies to the south and east, Kiryat Shalom to the east, and the rest of Jaffa to the west and north.
Its main streets include Zalman Shazar, Menachem Arbar, Tel Giborim, Shaked, Zunz, Greenboim, Ohalei Yaakov, Ha'Iris and Mordechai Bentov. The Ayalon highway and Route 4 are both close.
The registered-sales data groups Neve Ofer with Tel Kabir and Jaffa B under one heading. We use that combined figure throughout and label it as such.
An estate for new immigrants
Neve Ofer grew as a housing estate. From the 1960s to the 1980s it absorbed many immigrant families, including arrivals from Bulgaria, Georgia, North Africa and Bukhara. The buildings were simple, low-cost blocks, many arranged with gardens and open space between them.
For decades it was seen as one of the city's most neglected neighbourhoods. Its entrance is marked by institutions few people want as neighbours, including the Abu Kabir detention facility and the national Institute of Forensic Medicine. That has shaped its reputation as much as its housing.
Social indicators have been weak. Municipal data reported in 2022 ranked it 25th of 28 neighbourhoods for labour-force participation in 2019. It also had the highest share of four-person households in the city, a sign of how family-oriented it is.
Renewal: the plans for Neve Ofer
Neve Ofer is now one of the most ambitious renewal zones in Tel Aviv. Reporting in 2022 said approved plans could lift the population from a few thousand to around 25,000.
In September 2023, the district planning committee approved two adjacent pinui-binui compounds. Together they replace 422 flats in 21 buildings with 1,353 new homes and about 2,700 m² of commercial space, in towers of up to 35 floors.
- Ha'Iris compound: 510 new homes in four towers of 20 to 32 floors, replacing 172 flats in 8 buildings.
- Rasco compound: 843 new homes in four ten-storey buildings and four towers of 33 to 35 floors, replacing 250 flats in 13 buildings. It is being advanced by Yuvalim with Tadhar.
The Arbar compound, by Gabbai Group, was reported in 2022 as under construction, with 317 homes in three buildings of 6 to 18 floors replacing 112 flats. A long-term rental project of 370 homes by Ashtrom, built under the state's Dira Lehaskir programme, was already occupied by then.
The result will be a very different neighbourhood. New stock brings lifts, parking and protected rooms. It also brings density, traffic and years of building sites.
What it is actually like today
Neve Ofer is quiet, residential and green in places. Gardens run along Bentov and Arbar streets, and the blocks often sit in open space rather than on tight streets. Families are visible, and it feels more like a suburb than a city district.
It is also short of everyday amenities. Residents told reporters in 2022 that there was no supermarket, café or chain pharmacy in the neighbourhood itself, and few restaurants. Most shopping means a drive or bus ride to Holon or Jaffa.
Education has improved. A new municipal high school named after Shimon Peres opened in recent years, and the community centre has been expanded.
The older housing is the weak point. Many blocks are in poor condition, with no lift and no mamad. Maintenance in ageing estates is often minimal.
Transport is better by road than by rail. The Ayalon and Route 4 are close, and buses link to Jaffa, Holon and the centre. The Red Line light rail runs through Jaffa to the west, and the Green Line has been reported as planned for the neighbourhood's edges. Neither puts a station at most front doors today.
Who lives here
Neve Ofer is home to many long-established families, often from immigrant backgrounds. Households are larger than the city average. Younger couples, families priced out of the centre and renters have been arriving as the new buildings fill.
That mix is changing fast, and long-time residents have mixed feelings about it. We found no Anglo community here. English-speaking buyers who look here tend to be investors or buyers seeking one of the lowest entry prices in the city.
Prices and what you get
Neve Ofer is among the cheapest parts of Tel Aviv-Yafo per metre, and the cheapest of the neighbourhoods compared here.
| Neighbourhood | Median price | ₪/m² | Registered deals |
|---|---|---|---|
| Neve Ofer (Tel Kabir, Jaffa B) | ₪2,200,000 | ₪31,429 | 131 |
| Kiryat Shalom | ₪3,196,000 | ₪39,744 | 257 |
| Jaffa C and Neve Golan | ₪2,110,000 | ₪34,483 | 152 |
| Tel Aviv-Yafo (city) | ₪3,775,000 | ₪51,845 | 11,867 |
Registered sales, Jan 2023 – Aug 2026 (Neve Ofer, Kiryat Shalom and Jaffa C to Jul 2026).
Per metre, Neve Ofer trades about 39% below the city. The medians imply a typical home of around 70 m², so space is reasonable for the price.
The trend is flat. The median per metre was about ₪29,700 in 2023, then about ₪31,400 in 2024, ₪31,600 in 2025 and ₪31,500 in 2026 so far. After an early rise, prices have stalled in nominal terms.
Recent registered deals show the range:
- Zunz Street: 3.5 rooms, 73 m², ₪2,280,000 (July 2026)
- Shaked Street: three rooms, 65 m², ₪2,150,000 (May 2026)
- Menachem Arbar Street: four rooms, 71 m², ₪1,575,000 (May 2026)
- Zalman Shazar Street: six rooms, 140 m², ₪4,650,000 (May 2026)
The same 73 m² layout on Zunz Street sold for ₪1,950,000 in March 2026 and ₪2,280,000 in July. Condition, floor and building matter enormously here.
At the median of ₪2.2 million, expect a three-room flat of 65–75 m² in an older block.
Purchase tax at the ₪2,200,000 median works out as follows. A buyer of a single home pays about ₪7,740. An oleh within the Reg 12A window pays about ₪1,110. A foreign resident or buyer of an additional home pays ₪176,000.
On yield, interrogate the net. A ₪2.2 million flat needs about ₪5,500 a month to reach a 3% gross. Older blocks bring repair bills and special levies, and a building heading for pinui-binui may face years of uncertainty for tenants. Net returns can fall well short of the gross.
The honest risk is that a flat this cheap, by Tel Aviv standards, is cheap for a reason: old stock, few services and a renewal timetable you do not control.
Buying here: what to check before you sign
Which compound, if any.Ask whether the building falls inside the Ha'Iris, Rasco, Arbar or another plan. Ask how many owners have signed and with which developer. Dissenting-owner rules sit in the Evacuation and Reconstruction (Compensation) Law 5766-2006.
What you get in the swap.If the building is in a pinui-binui plan, read the developer agreement. Check the size of the new flat, the timetable, rent during construction and the guarantees offered.
TAMA 38 status.TAMA 38 expired on 18 May 2026; only projects with a valid permit continue. Otherwise, the routes are the Shaked Alternative (Planning and Building Law amendments 136 and 139) or pinui-binui.
Off-plan protection.For new homes, payments above 7% must be secured under s.2 of the Sale (Apartments) (Assurance of Investments) Law 5735-1974. Delay compensation runs under s.5A of the Sale (Apartments) Law 5733-1973, post-Amendment 9. The first 20% is unlinked, and at most half of each later payment can be index-linked.
Structural condition.Commission an engineer's survey of older blocks. Look for damp, cracked concrete and corroded reinforcement.
Protected space.Many older blocks have no mamad. Find the nearest shelter, and ask whether any renewal plan would add one.
Financing.Under Directive 329, banks lend up to 75% for a single dwelling, 70% for a replacement and 50% for an additional home. The 50% often quoted to non-residents is bank policy, not law.
Who it suits
Works well for
- Buyers who want one of the lowest entry prices in Tel Aviv-Yafo
Harder to recommend for
- People who want shops, cafés and street life on the doorstep
- Car-free households
- Buyers who need certainty about renewal timetables
- Investors expecting quick capital growth after the recent stall
The verdict
Neve Ofer is changing more than almost any other part of the city. Approved plans would turn a neglected estate into a high-rise district several times its current size.
That future is not here yet. Today it is an old estate with few services, a difficult reputation and prices that have not moved since 2024.
Cheap is not the same as good value. Buy the building's plan, not the postcode.
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