Illustration: Building in Tel Aviv/ShutterStock
According to the Central Bureau of Statistics, it appears that after a slight recovery in the months before the war, since the beginning of the fighting in Gaza, the stagnation in the real estate market, naturally, it should be said, has returned. This, it should be noted, is due to the fact that during the first two or three weeks of the war the sales offices were closed. Everyone was busy helping whoever they could, and as much as possible, strengthening the Israeli home front.
Demand and the number of transactions have not yet returned to pre-war numbers, but data obtained by Walla Real Estate on Monday certainly indicate that in recent weeks there has been a gradual recovery in interest in new apartments.
Where was a 100-year-old apartment sold for NIS 23 million?
An examination conducted by real estate appraiser Shmulik Cohen, CEO and co-owner of SK Appraisals, shows that during the war a significant number of luxury transactions were recorded.
As of October 7, more than 40 transactions have been reported to the Tax Authority nationwide at prices starting at NIS 5 million, of which 8 are over NIS 10 million.
The most expensive deal was signed on October 9. This is a deal for the purchase of a penthouse at 12 Mazeh Street in Tel Aviv, in a conservation building built in 1930. This is a 4-room apartment with an area of 94 square meters and another roof of 60 square meters, at a price of about NIS 23 million.
100 year old building: Mazeh 12, Tel Aviv
The next transactions, totaling NIS 17 million and NIS 16 million, are for the purchase of new semi-detached cottages from a contractor in Herzliya. The two deals were also signed on October 9, these are cottages with an area of 309 square meters built with 6 rooms.
Another deal worth NIS 14.5 million was signed on October 23. This is a new 5 room apartment at 9 Bezalel Street in Tel Aviv, the apartment covers an area of about 171 square meters, this is an urban renewal project.
The fifth transaction was also carried out in Tel Aviv. At 2 Agnon Street, a new 5-room apartment was sold for NIS 14 million. The deal was signed on November 14, a 154-square-meter apartment on the 25th floor out of 39 floors in the tower.
The data also show that out of 43 transactions exceeding NIS 5 million – 17 were carried out in Tel Aviv, 4 transactions were carried out in Herzliya, Jerusalem and Ra'anana, and 2 transactions in each of the cities of Petah Tikva, Kiryat Ono, Netanya and Ramat Gan. Individual deals were signed in Or Yehuda, Givatayim, Galil Yam, Modi'in-Maccabim-Reut, Or Yehuda and Tel Mond.
Will manifestations of anti-Semitism bring world Jewry to Israel?
Real estate appraiser Shmulik Cohen notes that it is important to remember that it is very possible that most of the transactions were not signed "under fire," that is, during the war, but apparently most of the deals reported in the first weeks were deals signed before the war, and only the actual reporting was carried out after the war broke out.
In addition, he notes that there may be quite a few transactions that have been signed and have not yet been reported, since reporting to the Tax Authority can be made up to two months from the date of the transaction. Appraiser Shmulik Cohen adds that before the war there was a sharp decline in the number of luxury transactions against the background of the increase in purchase tax and the increase in the interest rate in the economy, which made financing transactions very expensive.
Although it is still too early to assess whether we will see a recovery in the luxury market after the war, it is possible that following the manifestations of anti-Semitism around the world and the interest that began according to entrepreneurs' reports on the part of foreign residents, we will see more luxury deals carried out by Diaspora Jewry, whether it is a purchase for the purpose of aliyah, or as an asset in times of need.
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