The real estate companies in Israel are in a significant upheaval. The interest rate in the economy is rising, the prices are on a stabilization trend with a fear or expectation of a decrease, and the real estate companies, who have leveraged themselves in recent years with unprecedented amounts of financing, are groaning under the situation and starting to react.
Thus, the real estate company ICR announced this week that it is implementing the residential project in Ramat Hasharon for about half a billion shekels; a similar step is also taken by the real estate company, Hanan Mor, which offers for sale three properties in Harish with a total value of about half a billion shekels.
Illustration: The sign we were waiting for?
The real estate companies are starting to realize properties (Photo: ShutterStock)
The real estate company ICR, a subsidiary of Israel Canada, reported that it is entering a partner in the project in Ramat Hasharon. This is a project for the construction of approximately 827 apartments, commercial spaces and offices, which it purchased in July 2021 in a tender of the Israel Land Authority for approximately NIS 1.9 billion, which which reflects a cost of approximately 2.24 million shekels for land per housing unit, a price that was considered a "record" in those days. The
offer for the high price was based, among other things, on the zero interest rates that were offered at that time. Today, when interest rates are on the rise, and prices are on a stabilization trend, the real estate companies understand that they will have difficulty to sell apartments at prices as she initially expected.
The project includes two phases, where the agreement reached by ICR with the partner, the contractor company, Claude Nachmias, applies only to the first phase in which 410 apartments will be built.
Claude Nahmias will also receive the contracting activity of the actual construction of the apartments.
The city of Harish (photo: official website, photo - Mor Shikipi Lati)
In addition, last week it was announced that the Hanan Mor real estate company is offering real estate companies to purchase three properties from it that generate income in the city of Harish for about half a billion shekels.
The first property is the MORE mall at the entrance to the city, with an area of approximately 14,000 built-up square meters. The anchor tenants in the complex are Shufersal, Fox, Bank Hapoalim and Super Pharm, and the value of the property, according to the company's reports to the stock exchange, is NIS 180 million. Another commercial center offered by the company is the commercial
center MORE 1 which is located near Route 6. The center covers approximately 13,000 square meters built and includes offices and commerce.
The anchor tenants are Klalit and Maccabi health funds, Super Pharm and Victory chain.
The value of the property is about NIS 166 million.
The third property is a land with an area of about 5 dunams on which a building permit allows the construction of about 18,000 square meters for offices and commerce.
The value of the land is NIS 75 million.
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