Is it worth living in the center of Herzliya?
Real Estate Review Today, in collaboration with madlan
Metropolis complex before demolition
Photography:
Marius Sharpen
Produced by the Department of Special Supplements
what's the story
The center of Herzliya is an old and large area, which covers about a quarter of the built-up area of the city, which is located east of Ayalon lanes and coastal tracks.
The neighborhood mainly includes old and low-rise construction of 3-4 floors, but in recent years new and taller buildings have also been erected in it as part of urban renewal.
Most of the renewal so far has been done within the framework of TMA 38, but a number of evacuation-construction projects are being promoted and are expected to refresh and increase the supply of apartments.
There are many options for shopping, errands and entertainment, especially along the main arteries - Sokolov, Ben Gurion, and Rabbi Kook / Arlozorov.
The demographic data indicate the aging of the population in the neighborhood, with the age group that has grown the most in recent years being girls and people aged 60 and over, while the population of young parents is declining.
The reason is probably the good conditions, which make the existing residents stay, combined with a relative minority of new apartments, so that it is difficult for young people to enter.
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population
The population is diverse and includes young couples and old families, singles, students and quite a few retirees.
The proximity to various shopping and entertainment centers and public institutions - including educational institutions, community centers, cultural institutions and more - probably contributes to diversity.
The population has grown by about 8% in the last decade, and is expected to grow even more in the next decade with the implementation of several evacuation-construction projects that have already been approved.
transportation
Due to its central location and its proximity to employment, shopping and leisure centers, there is a shortage of parking and traffic congestion in the neighborhood, especially on and near the main streets: Ben Gurion Boulevard and Independence Streets, Sokolov and Rabbi Kook.
Public transport routes (public transport) that will be built on these streets in the coming years are expected to make it even more difficult to travel by private vehicles in the area.
However, at the central station (located in the neighborhood) and on the main streets, many bus lines stop that connect the area to the rest of the city, the cities of the Sharon and the Gush Dan.
The municipal train station is up to a quarter of an hour away by bus and allows (when everything works properly) quick access to the center of Tel Aviv and the rest of the coastal cities.
The construction of the platforms is expected to make bus travel faster, more convenient and more reliable, and in the distant future a metro line to the center of Tel Aviv may also pass here.
The partial bike paths that have been paved are far from allowing continuous riding, but according to the municipality's plan, in the future there will be a network of paths that will allow safe and pleasant riding to a variety of destinations throughout the city.
Benefits
Proximity to shopping centers, errands and entertainment.
Good transport accessibility that is expected to improve further.
Diverse population.
Disadvantages
Using a private car will become more difficult.
Not safe for bicycles.
Urban renewal projects throughout the neighborhood have created construction nuisances.
Supply and prices
In 2020, there was a decrease of more than 50% in the volume of transactions compared to 2019, mainly in the purchase of new apartments.
A total of 229 apartments were sold during the year, compared to 471 years earlier.
The sale of 3-room apartments (which are mainly defined as investment property) decreased by more than 60%, and during the entire year only 16 apartments of this type were sold (compared to 72 last year).
In prices, however, there was almost no change.
The prices of second-hand apartments have not changed at all, and in fact in new 4-room apartments there has been a decrease
Of about 1.7%, which reflects about NIS 400 less in the price per square meter.
In terms of supply, the momentum of building permits, granted in 2019 for more than 20 new projects, has come to a near halt.
In May 2020, the Herzliya Municipality announced the freezing of building permits in the area.
Today, the neighborhood is saturated with TMA 38 projects, where no less than 200 buildings are or have undergone licensing procedures for strengthening and addition (50%) or demolition and construction (40%). Rinovo's Ezra Sofer 5-11 project is currently being built in the northwest of the neighborhood On the border with the green neighborhood. This is a TMA demolition and construction project that offers 4-5 room apartments.
In the Weizmann area, the Metropolis complex is being marketed, an evacuation-construction complex in which 278 apartments are expected to be built in 11-14-story buildings.
Natsva is currently building Natsva Herzliya Park, a complex with 406 new apartments in five buildings.
In the eastern part of the neighborhood, the Kehilat Zion 24 project was built, offering 4-5 room apartments and penthouses at prices starting at NIS 2,720,000.
For lovers of boutique and luxury apartments, Av-Gad is building the Yehuda Halevi 8 project, where it offers a spectacular garden duplex in a boutique building with only 13 apartments.
Project H in the community of Zion of the HQR company offers the last penthouse, with an area of 147 square meters with 130 square meters of balconies, in a 6-story building with only 11 apartments.
Future Plans
Public transport
: In the coming years (the exact schedule is unknown) public transportation routes are expected to be paved on Ben Gurion Boulevard and on Independence and Rabbi Kook streets.
The construction of the public transport is expected to reduce the number of lanes for the private car and exacerbate the traffic congestion in the area, but at the same time allow faster travel of public transport.
Evacuation-construction:
Throughout the neighborhood there are a number of urban renewal projects, including evacuation-construction.
Because they involve redesign of extensive areas, these projects make it possible to add public areas like gardens and public institutions to crowded areas.
On the other hand, they will also burden the existing urban infrastructures, so at the moment the municipality is opposed to promoting them until the government invests in those infrastructures.
Metro line:
On Ben Gurion Boulevard, a metro line is expected to cross between streets in the south and Raanana in the north, and cross the road in Ness Ziona, Rishon Lezion, Holon, Tel Aviv, Herzliya, Ramat Hasharon and Raanana.
The metro network will allow quick and easy access to a variety of employment, residential and leisure centers, but it has not yet been approved and budgeted, and may not be implemented at all.
In any case, it is not expected to rise before 2035.
An opportunity for investors?
It is never harmful to own an apartment in the center of Herzliya, but if until two years ago it was possible to buy a 3-room apartment in an old building in the neighborhood in the hope of moving it to TMA 38 and selling it after it was converted to a new 4-room apartment This is a faint fulfillment, until NAP 38 will be completely eliminated, at least according to the plan, in October 2022.
It is likely that in the coming years there will be attempts to implement evacuation-construction plans, and of course the municipality can initiate plans for renewal on its own initiative, but the process will be much longer than that of NAP 38.
This of course does not mean that there is no upside in buying an apartment in the center of Herzliya.
Already today, Herzliya enjoys the fact that it is close to Tel Aviv and attracts young families, who want a high level of quality of life and significantly lower prices than the neighbor.
In terms of rental yield, this is a solid investment, yielding an average of 3.3% per year.
The numbers speak
Socio-economic index
: 6 out of 10
Madeleine Meter for Education
: 7.8 out of 10
Percentage of children in the neighborhood
: 32%
Average price of a new 4-room apartment
: NIS 2,498,000
Average price of a second-hand 4-room apartment
: NIS 2,079,000
Produced by the Department of Special Supplements
