Sarona Trio Kfar Yona, Shponder Fadlon (Photo: SHARPEN3)
The purchase of an apartment is among the critical decisions a person makes in his life. At a time of uncertainty stemming from social and political crises, soaring interest rates, a wave of price increases and the cost of living, most of the public would prefer to wait for the situation to clarify and understand where to go before making a decision to purchase an apartment. He will "sit on the fence" until his rage passes, just as is happening now. Recently, we have witnessed a trend of moderation and decline in the rate of home sales in Israel, and therefore real estate companies are choosing to approach buyers and offer special purchase terms that until now could not be found in the market.
The Shponder Fadlon Group, which currently builds residential, commercial and mixed-use projects, including in the Sea Park in Bat Yam, Kfar Saba HaYaroka, the Sarona neighborhood, Kfar Yona and Even Yehuda, provides buyers in its project in the Sea Park, for example, payment terms of 15% at the time of purchase and the balance of payment (85%) prior to receiving the key to the property, without linkage to the index, in addition, the entrepreneurial company takes upon itself the interest payments until receiving the key.
At the same time as demand has weakened, the supply of apartments has almost completely stopped because developers are in no hurry to purchase land and compete in administrative tenders or realize existing land, due to the increase in financing and the high interest rates that affect them and create a situation in which "the money costs them more." The Central Bureau of Statistics recently reported that rental prices in the new contracts also increased by 9% between August 22 and April 23, and it seems that the option of renting housing is also becoming almost impossible for many. Developers expect that in light of all this, extreme price increases in the housing sector are imminent, and when that happens, the housing market will probably no longer look as we know it today.
Roy Fadlon Owner and Co-CEO of Shponder Fadlon Group (Photo: Shponder Fadlon)
Roy Fadlon, CEO and owner of the Shponder Fadlon Group, explains, "When new building starts dwindle and supply decreases, and at the same time the public is currently sitting on the fence, a situation has arisen in which once interest rates stabilize and people return to purchasing homes, there will be a bottleneck of demand, and in my assessment we will see a drastic upward trend in prices in the near term that will not allow those who can purchase an apartment today to do so in the future. Until there is an interim mechanism here, the residential world in Israel as we knew it will not look the same."
"I unequivocally say it's time, want to buy an apartment," Fadlon says. "The given situation of halting sales is definitely temporary and could change at any moment. In the near term, housing prices in Israel are expected to jump significantly. It is enough that we see the beginning of political stability, a sense of unity, a halt in the increase in interest rates around the world, and the stabilization of the shekel against foreign currencies, and home prices will skyrocket. With a trend of halting interest rates, calm and internal Israeli quiet that will be seen from the outside, the housing sector will return to being a burning issue."
"At the same time, home prices will rise and in a big way because demand is not over and will not end, people are simply sitting on the fence today because a national crisis is perceived as a time that is not suitable for large deals, but this is an opportunity that will not return. In the current situation, because of the halt in transactions, the mortgage banks, the developers, and among others, we, too, are granting benefits and conditions that would not be possible under normal circumstances, and this is another reason to purchase now. For example, in the "Trio" project in the new Sarona neighborhood in Kfar Yona, we provide a window of opportunity of payment terms 15-85 and as an entrepreneur guarantee the customer a closed price without linkage to the index and interest until the key is received (the benefits are subject to the approval of the mortgage bank)."
Shponder Fadlon Group's Breeze Project (Photo: Viewpoint)
Shponder Fadlon Group is an entrepreneurial construction group that is one of Israel's leading real estate groups, specializing in entrepreneurship and property management. The Group has one of the oldest contractor execution arms in Israel, with an unlimited contractor classification that allows it to control the quality of the project from initiation to completion of execution.
Among the prominent projects: the Gigis complex in Rishon LeZion, the Trio project in Kfar Yona – mixed-use, Fadlon House – Shponder in the new industrial complex in Netanya, the Love project in Kfar Saba HaYaroka, Nitzanim Biroka in Kfar Saba HaYaroka, the Villa V project in the Hadera Park neighborhood and the prestigious Breeze project in the Sea Park.
In association with Shponder Fadlon Group
- Real Estate