Israel's luxury home market: Less busy, still pricey

Published date03 August 2022
Publication titleGlobes (Rishon LeZion, Israel)
NIS 20.14 million: Impression of 2 Hayarkon Street, Tel Aviv (Mandarin Oriental project). 139 square meter apartment on seventh of 25 floors. (Viewpoint)

The project that Cohen refers to is The Residences, Mandarin Oriental at number 2 Hayarkon Street, next to the Dolphinarium. The project is led by Hertzel Habas, the developer of the Yoo and the 1 Rothschild Boulevard towers, together with Orit Freedman Weissman, formerly CEO of Goldman Sachs Israel. The investors are private equity firm Apax Partners founder Sir Ronald Cohen, Colmobil Group chairperson and controlling shareholder Shmuel Harlap, and the Bronfman family's Claridge fund. The project is at the shell stage. Occupation is schedule for early 2025.

So far, 63 transactions in the project have been registered on the Israel Tax Authority's website, carried out over the past two and a half years. Five of them were in the first six months of 2022. The latest deals indicate a normal price range of NIS 130,000-140,000 per square meter, although some exceed this.

A 139 square meter apartment on the seventh of the project's 25 floors was sold for NIS 20.14 million - NIS 145,000 per square meter; a 245 square meter apartment on the seventeenth floor was sold for NIS 34.3 million - NIS 140,000 per square meter; and a similar apartment on the eighteenth floor was sold for NIS 31.4 million - NIS 128,000 per square meter. The price differentials may be because of different design or direction and view.

Herzliya: 11 deals versus 48

The highest value deal of the first half of 2022 was in Ha'eshel Street in Herzliya Pituah, one of the most expensive streets in this mega-prestigious neighborhood. This deal, however, in which a house on 2.2 dunams was sold for NIS 63 million, is only in sixth place among the deals carried out in the neighborhood since 2019. The remaining high-end deals in the city in the first half of this year range from NIS 10 million to NIS 15 million, prices that have become routine there.

NIS 63 million: House on 2.2 dunam plot on Ha'eshel Street, Herzliya Pituah. (Eyal Izhar)

Only eleven luxury deals took place in Herzliya in the first half year, versus 48 registered with the Tax Authority last year, 33 in 2020, and 25 in 2019. The number of high-end deals so far this year is 50% down in the same period last year.

Appraiser Israel Yaakov, who specializes in financial consulting, says, "When it comes to the luxury market in Herzliya, you have to distinguish between expensive neighborhoods and...

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