Conspicuous Consumption: Luxury Lifestyle in Israel

Certainly uncommon but not rare: luxury cars like this Maserati are showing up on Tel Aviv streets

Israelis are not big on showing off their wealth. There is still a pioneering socialist attitude from over a century of lifestyle based on socialist values. Israel started shifting from state sponsored socialism in the 1970s, yet signs of the shift are not completely clear from a street view. Luxury items are plentiful in shops, but when it comes to cars, it's a different story. The love affair with cars and driving started here in the 1980s. It started with demand from average Israelis for the first family cars. Subaru from Japan turned out to be the popular brand Israelis could afford. At first Japanese manufacturers (Toyota, Honda, Nissan and Mazda) did not sell due to the Arab boycott. But for the first time family cars were affordable and started the love affair in cars. 

Could You Point me to the Ferrari Dealership Please?

Fast forward thirty five years, and you can still see old Subaru jalopies on Tel Aviv streets. But a new red Ferrari 488 GTB will get more attention. Conspicuous consumption comes with economic growth. It comes with the hundreds of new millionaires from hi-tech startup exits and consumer sector business leaders. There are just as many tourism and retail success stories as there are programmers and computer chip moguls. There seem to be more large late model Mercedes, Lexus and Jaguars than Ferraris and Corvettes. But the luxury car craze is certainly here. The personal luxury goods like Rolex watches is also growing with a new showroom on Ibn Gvirol. Luxury apartments from new high rise towers to renovated penthouses is a steadily growing and is considered a real estate sub-sector. (interesting building at 17 Arlozorov) Our economic miracle was considered a way to bring the lower and middle classes to western world living standards. But that era seemed to have ended with the trend to show more wealth and not to be fearful of showing off the new bling. More on this to come soon....  come back...