Between Miami Beach and Peeking Beach: What has changed in the prestigious real estate market?

Everyone is talking about the boiling real estate market, but if there is anything whose price has risen more than a new apartment in recent years, it is a new luxury apartment. Real estate for the rich is boiling - and not just in Israel.

A conversation with those who have already refused offers of NIS 80,000 per meter and also a small tip, which can make an ordinary apartment prestigious

Talia Levin

20/04/2022

Wednesday, 20 April 2022, 12:58 Updated: Thursday, 21 April 2022, 08:58

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

If for a moment you managed to come to terms with the fact that you will probably not really have an apartment in Tel Aviv in the coming years, we are here to discourage you even more.

It turns out that with the unimaginable rise in housing in Israel in the last two years, a particularly interesting phenomenon occurs: the prestigious real estate market moves up almost in line with the American market, which is another small climb - and it will be responsible for the ozone hole

. Settle Before Reading: A Florida oceanfront mansion belonging to former US President Donald Trump's family is being offered for sale for $ 59 million, an increase of $ 10 million over last year, when it was first offered for sale.

If that's not enough, singer Adele bought Sylvester Stallone's home in Beverly Hills for $ 158 million.

The house has been offered for sale intermittently in recent years, and in early 2021 Stallone asked for another $ 110 million, a price he had to cut sharply to reach a deal.

Even the ultimate lover Richard Gere recently sold his home for $ 28 million, the villa - formerly of Cindy Crawford - is now being offered for $ 100!

million dollar.

And these are just the famous ones, one can only imagine how many people sell their homes at similar prices but have not made headlines.

Good to know (promoted)

Toning in water?

works for me!

Amazing pre-summer laying now at TI

Submitted on behalf of TI SWIM

Donald and Millennia Trump.

A family estate from a former president will leave you with more than $ 60 million (Photo: Reuters)

You are probably telling yourself that in Israel there is no chance of that happening.

So here are some numbers from here: At the beginning of the year,

purchased 1.5 dunams in Neve Tzedek in a total deal of NIS 105 million.

, the controlling owner of Tadiran, purchased a 330-square-meter plot of land in Neve Tzedek with a small, very old house for demolition. Mamrod paid NIS 40 million for the property, ie at a value of NIS 120 million per dunam.

Want more? A penthouse on Hayarkon Street was sold in NIS 108 million, in the Aviv Promenade Towers project. And if we were dealing with penthouses, then the luxury tower at Arlozorov 17 in Tel Aviv, a penthouse apartment with a size of 370 square meters was sold, approaching NIS 50 million.

The first question I asked

, why now?

"This is a question of the hundred million dollars, and note that I do not say a million because even in the State of Israel a million dollars no longer gives too much. Trying to find an answer to your question all over the Western world. The same thing happens in the US and Canada. skyrocket.

There is not much private land in Israel, there is a large rate of population growth, so we feel it even more. "

Kenner says that factually we may never know the answer. The hypotheses? He calls it "healthy immigration."

"There is always an increase of a few percent a year but it does not go crazy. Then came the corona and put the market on hold," he explains.

"The real estate market froze to death for a while and immediately after there was a slight recovery, after the first wave subsided everything started to recover and an onslaught began that is unexplained on real estate."

"Expensive real estate is a point, all the more so in the luxury market, which is also becoming more expensive.

There is an increase in transactions.

In the field of luxury we are already used to large numbers, but such numbers we have not yet seen.

Luxury apartments are being hijacked, and we have never used this term “kidnapped” in luxury.

Prestige is not snatched because it is supposed to be given to a small percentage of the population in advance, how can such a thing be snatched?

But what we found out is that there is a lot of money here.

And we have seen people aged 50-60 plus and younger who come and buy luxury real estate and in quantities. "

Adele, recently bought the estate that used to belong to Sylvester Stallone (Photo: GettyImages)

Between Cassio and Rolex

Does it put the market under stress?

Also affects the regular market?

"The luxury market has always been run in isolation from the regular market. It's a different market, like Rolex versus Cassio. Anyone who has always bought luxury

. Huge amounts of money, and people wanted real estate, for all real estate. And it's not just the luxury real estate market, you see this influx in the luxury car market as well.

People are buying luxury everywhere.

A lot of money was released into the world air.

Apparently what was being held close to the chest - maybe after the plague people felt it was time to let go and enjoy.

"The plague restored the security of the house and people saw the fall in the stock market (which has meanwhile recovered and risen. TL) and the rising real estate market, it was like a fire in a field of thorns."

"The French wave has actually been fading in recent years, also due to the decline of the euro against the shekel, which has contributed significantly. Their money and invest elsewhere, whether in France or Portugal.

Even our coastal towns have become expensive for them and an investment that is not so worthwhile.

Those who enter the market more and more are the American market, also in terms of immigration and see the correlation.

We also see a much higher attraction to Israel, which was not the case in the past.

Americans who once sat on the fence suddenly come, buy apartments, and love the prime locations.

And of course Jews from England, South Africa and Australia. "

Cindy Crawford and Richard Gere - Would you buy a used villa from them (Photo: GettyImages)

Intermediate: And who is not left?

Are there differences in the desired locations between foreign residents and Israelis?

"Foreign residents are mainly looking for coastal cities that are a natural resource that we have and do not have. The attraction is in a prime location, they love the familiar and close to the center. There is such a trend of buying a home in Israel if anti-Semitism worsens."

"They really like to slander these people and it is not clear why. The amount of taxes they pay to the state is enormous, purchase and property tax amounts to billions Lots for the right to buy an apartment here. "

"The expertise is working with them. These are very smart people, you have to understand their culture, the way to approach them. Sometimes also what the politics in their countries are, what not to talk to them. An American client is completely different from a French client for example. Entrepreneurs are very fond of foreign residents, "It winks at them. It greatly enhances their property."

"First of all, luxury buyers and all these sophisticated buyers know that they put a lot of money, especially here, so they first of all like the things that make the quality of life in the State of Israel quality: proximity to the sea, holy places, quiet streets.

Luxury buyers - love special things, something "They can achieve and not others. Think of one in a hundred works, just like in art. They like to be on the best lot on the street, want the most special locations. The historic buildings, they like to have something that sets their property apart, added value that is not found anywhere else."

"Israelis will usually start and usually finish at a price. Israelis do market surveys at an sometimes inconceivable level, they will analyze every house on the street, and I'm talking about the ultra rich.

They want a deal. Even when I take them to places where everything is done at the highest level, in the end Price plays a very important role among Israelis, they will agree to compromise on many things that non-residents will not agree to compromise on, just to get a discount and feel that they have received a good price.

Israelis do not like to pay above the market, and unfortunately luxury properties are sold above the market.

But in terms of requirements, where we once felt that there was a gap in the requirements of foreign residents in terms of architecture and certain materials compared to Israelis, we actually improved.

The taste of Israelis in terms of prestige is equivalent even to the richest foreign residents.

"We closed the gap because today Israelis are exposed to trends in the world, everything today is terribly global, they see and want homes like they do in the most magnificent towers on the park in Manhattan or Bel Air."

Roi Kenner, Luxury Real Estate Marketing Specialist for Israelis and Foreign Residents and CEO of the Motifuri Real Estate Group, (Photo: PR)

Miami Weiss

Joining the conversation is

who explains the reason for the American madness that is affecting the whole world. “Today the market in Miami has become an illogical market in terms of its prices.

Prices are boiling these days and this is due to the crisis of all trade and real estate in New York, due to the influx of people from the west coast to the east coast in the past year. Miami and Florida in general, because of taxes Proximity to Latin America etc. "

" exactly.

The demand is huge, and the supply that is not that big is causing prices to go up.

Although Florida has a lot of land that can be used.

And there are many projects that manage to sell them even before the permit is obtained on paper.

In Israel, too, for the same reasons and others, the market is boiling. "

"There is a lot of demand today for penthouse apartments especially in Tel Aviv because of the distress that was in Corona, and garden apartments

in the Tel Aviv envelope in the northern neighborhoods. Know that people are willing to pay insane prices. The second hand market in Tel Aviv is also inconceivable.

The 47,000 shekels per meter and even 55,000 shekels per meter, for things that require renovation. First, sold for no less than NIS 60,000 per meter.

The special apartments reach amounts of between NIS 10 and 15 million.

Last week, we refused an offer we received for a payment of NIS 80,000 per meter. "

"Today we refuse buyers who are interested in buying for such sums. The supply of these apartments is very small and the demand is huge, and people are willing to pay and it has no end. By the way, it is not only older people but also very young people.

"Anyone looking for an apartment in Tel Aviv for sale today has a very hard time finding it.

Sellers understand that the property they are putting out to market is much higher than they imagine, and they know how to demand a significantly higher price.

There is no grip between the price per square meter and what actually happens.

Here is another example: in Tel Baruch North, a 5-room apartment that is not new but in good condition, cost around 4.2 million a year and a half ago.

Today if you look for a 5 room apartment in this neighborhood you will not find less than 5.5 million, which is only in the last year.

This is something that does not make sense, and this is not about new nylon apartments.

And it is important to say that the price that is luxury does not necessarily indicate that it is a luxury apartment, the price is due to the lack. "

Guy Yadin, Entrepreneur, Yadin Group Development and Construction (Photo: PR)

LOCATION, LOCATION, LOCATION

What is the difference between an expensive apartment and a luxury apartment, is there a criterion?

"Certainly. The location. The more you enter the center of Tel Aviv, the more expensive the value of the land and the more considered the location. Also in luxury apartments are considered the technical specifications of the apartment, flooring for example, whether it is porcelain granite, marble, very unique wood or tiles imported from Italy

. Ultra-luxury is also a coveted field and it is characterized by towers. There people are looking for the facilitation, spa, guarding, gyms close to a shopping center. The Tzameret Park neighborhood is an example, for example. Israelis, by the way, really like The towers and the proximity to everything. "

It happens not only in Tel Aviv of course.

This is Kfar Shmaryahu, Herzliya, Caesarea.

Villas, luxury houses and estates, even in the village of Netter Vidin reminiscent of the old Tel Baruch neighborhood where

Builds her private estate.

But Yadin points out that the price for private homes has not risen like the housing market, which has risen significantly.

"It's a little different and hard to explain. In principle the price of land should be the same, but the math doesn't work that way. Somehow there is a higher demand for apartments."

Architect Shira Muskel, Hillel Architecture and Interior Design (Photo: PR)

Do it (almost) yourself

Of course, we will not end up without an optimistic tone, which can turn you, even if you are only in the top decile and not in the millennium, into owners of luxury apartments.

how?

With the help of design.

who, together with her partner

, mainly cultivates luxury projects.

"Most of our projects are mainly to take existing properties and turn them into luxury properties, when they already have a base, it allows us to make revolutions in a relatively short time."

A space in an apartment in Tel Aviv, before the renovation that made it prestigious (Photo: courtesy of Hillel Architects)

Wi-Work for every worker

Muscle explains that change and unimaginable demand are due to two main reasons: "The global world, travel, hotel exposure, design and user experience are something that people see not only in photos, and people want to have one. And whoever can afford it, wants everything he had outside to bring home now. Gyms, home theaters and pools and saunas, everything has taken a step forward.

The whole issue of wine and home bar and drinking experience, and even study rooms. "The way today a couple wants to set up Wi-Fi inside the house. And the other level is of course the infrastructure and materials. Heating comes in standard, a smart home with all its components, a certain level of windows, awareness of thermal and acoustic insulation and imported windows."

"We are all Israelis at the end, who want to touch the sky. And I think part of our job is to provide the experience. When there is a high budget it allows us to play and do things beyond. But we always prioritize how to give added value and the feeling that you are not in a normal home. The complete living experience. "

The same space, in an apartment in Tel Aviv (from the previous photo), after the renovation that made it prestigious (Photo: Courtesy of Hillel Architects)

• Of money

Tags

• Luxury apartments

• Apartments

• architecture

• Housing market