Iran missile strike on Tel Aviv leaves financial fallout at Da Vinci Towers
Ten months after the strike, south tower rents trail both compensation rates and nearby projects.
The rocket barrage on central Tel Aviv in June 2025 caused structural damage to the north tower of the Da Vinci Towers project and lighter damage to the south tower, most of which has already been repaired. However, the south tower’s lobby remains closed due to damage, and residents can currently access the apartments only through the parking garage.
Ten months later, it appears that beyond the physical damage, the project is also suffering reputational harm. Calcalist has learned that apartment owners in the south tower are struggling to rent out their units at prices comparable to those achieved before June 2025 or to similar projects in the area.
The Da Vinci Towers project, developed by Israel Canada and Acro Real Estate and designed by architect Avner Yashar, was completed about four years ago. The approximately 10-dunam site was acquired by the two companies from the Israel Land Authority (ILA) in 2015 for NIS 830 million (approximately $267 million).
The project includes two 44-story residential towers connected by a shared swimming pool. Adjacent to the towers is a nine-story office building with commercial and public spaces, as well as 2,500 square meters designated for an urban cultural center.
In total, the project comprises 412 apartments, 40 of which were designated for long-term rental at reduced rates.
In December 2025, Tzahi Abou’s real estate company won an Israel Land Authority tender to purchase the rental apartments in the two towers for approximately NIS 61 million (about $19.6 million). About half of these apartments are located in the north tower, which sustained significant damage from the Iranian missile strike. The remaining 20 apartments in the south tower were also damaged, though to a lesser extent.
In late June 2025, it was reported that compensation payments made by the Property Tax Authority to residents forced to evacuate the towers were determined based on apartment size and floor level. For apartments measuring 63-88 square meters, monthly compensation is approximately NIS 12,000 (about $3,860). Apartments of 91 square meters receive about NIS 14,000 (around $4,500) per month, while units measuring 115-121 square meters are compensated at roughly NIS 18,000 (approximately $5,790).
Apartments of approximately 265 square meters receive between NIS 55,000-65,000 (about $17,700-$20,900) per month. Compensation for the 350-square-meter penthouses was determined individually. A clarification from the Property Tax Authority indicates that these rates are not expected to change.
However, ten months after the strike, it appears that apartment owners in the south tower may be at a disadvantage. While they are able, in principle, to return to their apartments or rent them out, market rents appear to be lower than the compensation rates paid to evacuees.
According to listings on the real estate website Madlan, rental prices in the south tower are below the compensation benchmarks. A five-room, 129-square-meter apartment on the 24th floor is listed for NIS 15,000 (about $4,820) per month, and a similar apartment on the 23rd floor is listed at NIS 14,500 (around $4,660). By comparison, the Property Tax Authority pays roughly NIS 18,000 (about $5,790) for apartments of comparable size.
An 80-square-meter apartment on the 20th floor is offered for NIS 8,900 (approximately $2,860) per month, versus around NIS 12,000 ($3,860) in compensation for a similar-sized unit.
Rental prices in the south tower are also lower than those in comparable new projects in the surrounding Sarona area. According to Madlan, a five-room, 124-square-meter apartment on Arania Osvaldo Street is listed for NIS 22,000 (about $7,070) per month. On Kalman Magen Street, a 101-square-meter, four-room apartment is listed for NIS 12,000 (around $3,860). A 90-square-meter, three-room apartment at 8 Yitzhak Graziani Street is offered for NIS 15,900 (approximately $5,110).
Erez Cohen, former chairman of the Real Estate Appraisers’ Bureau, told Calcalist that the Da Vinci Towers project is currently facing what he described as a “serious stigma.” According to Cohen, this stems both from the physical damage and the uncertainty regarding the timeline for repairing the north tower. In his assessment, projections that repairs will be completed within a year and a half may be optimistic.
“Due to the geopolitical situation, the neighborhood, which was damaged during the 12-Day War, is perceived as a marked target,” Cohen said. “The luxury Da Vinci Towers project, despite its prime location near Azrieli, the Ayalon Highway and the Sarona complex, is now carrying a badge of disgrace.”
Cohen added that, regardless of the damage, apartment owners continue to bear high maintenance costs, which he estimates at approximately NIS 18 per square meter (about $5.80 per square meter) per month.
