Foreign buyers are returning to the real estate market in Israel

Real estate agents reported that American Jewish buyers have closed dozens of deals for luxury homes in Israel over the past year, especially in Tel Aviv and Jerusalem. Deals have been closed by transatlantic Zoom calls, emails, and even by people sneaking into Israel despite the closed atmosphere. The Wall Street Journal devoted a major topic to the issue last week in an article titled “American Homebuyers Flooding the Tel Aviv Real Estate Market.” The article talks about dozens of deals and a huge interest currently in luxury homes in Tel Aviv. The article quoted the director of Beauchamps Estates in Tel Aviv, Matthew Portnick, as saying: “Buyers from the United Kingdom and France used to dominate the market, but now Americans equal them. Americans also dominate the biggest and highest deals in the luxury market.” He said the biggest sale for 2020 was a purchase made by an American couple at Arlozorov 17’s apartment for 84 million shekels, or $ 25.2 million. Tel Aviv real estate agent Oren Katz, a specialist in the high-end market, agreed with the sentiments expressed in the article. “Until now the market was mainly British and American and the American market was sleepy. Here and there people might buy but suddenly there is a real buzz with people who have made a decision.” Among other things, Katz represented Russian-Israeli billionaire Roman Abramovich in his big real estate deals in Israel. Katz added, “There is interest, a lot of e-mails and American mediators are communicating with us about cooperation. This is something we did not know before. After the first closure, contacts began with Israel. In recent months we have toured real estate with the Americans. Maybe some of them hold Israeli citizenship and some have Israeli citizenship.” The other one does not know how they entered the country. With most of the deals we communicate with each other via the Internet or by phone. ” The Wall Street Journal also quoted Ina Fleischler, Marketing Director at Israel Sotheby’s International Realty, who said, “Most high-income clients want properties located either directly on the waterfront or on one street away from the water, which pay average. The price of prime real estate overlooking the sea has reached $ 4.8 million. There is constant demand. Tel Aviv is a hot market. Supplies are low, because there is not much space for construction. ” According to the Wall Street Journal, “Job opportunities and a modern urban setting attract a mix of young international residents, while year-round good weather and a beach location attract families and retirees.” Related topics Rising housing prices in Israel The American couple will continue to buy an apartment in Tel Aviv for 84 million shekels. Years of reduced purchases. On the other hand, the chief economist at the Ministry of Finance said that only 420 apartments were sold to foreign residents in the first half of 2020 and the chief economist pointed out that “while it is safe to assume that the lack of purchases made by foreign residents has It was recorded largely due to the technical difficulties of the foreigners entering Israel, but in many cases the foreign residents were helped through Israeli contacts and therefore there is no single explanation for the fall. ” The real estate market for foreign buyers has been declining for 15 years. It peaked in 2005 and 2006 when 5,000 apartments were sold in each of those years, accounting for 6% of all apartment sales in Israel. The numbers fell sharply, especially after the financial crisis in 2008. A third of all apartments sold in Israel to foreign residents were consistently in Jerusalem, for religious reasons. After that, the Sharon area, especially Netanya and Herzliya Betoah, became popular with foreign buyers as well as Tel Aviv. Oren Cohen, a specialist in luxury real estate in Jerusalem, talks about the dozens, possibly hundreds, of American Jews who have shown an interest in Israeli property in the past year. He said, “I have completed some very expensive deals by Zoom and I am in touch with others who are afraid to complete such expensive deals online and they are waiting for the sky to completely open so they can come to Israel and do a deal.” Cohen and Re-Max-Hazon, real estate franchise owner Ariel Mirsky, said that if until recently people were buying 2-3 vacation rooms in the city center, in Mamilla, or near the Kotel, then foreign residents today would buy the Big 4, 5 and Even 6-room apartments. Previously the apartments were intended for vacations but now the apartments are sold to families who plan to live in the city at some point in the future. Another surprisingly popular site is Ashkelon. RE-MAX Ashkelon franchise owner Yarion Rosenik said that American Jews have never shown interest in the southern coastal city in the past, but that in recent months he has received 12 inquiries from American Jews considering buying a property in Ashkelon. “This is a new trend for American Jews who are thinking of immigrating to Israel and settling in Ashkelon,” he said. Katz speculates that the reason for the increased interest in American Jews is that in the United States in 2021, Jews feel less safe than they have been in the past. Cohen says he feels this way with religious Jews he deals with in Jerusalem and who feel an atmosphere of political and economic instability in the United States. “The demonstrations there, the storming of the Capitol and the way Covid-19 was handled in Israel compared to there convinced them.” But with most people reluctant to do deals via Zoom, it is only when the sky is completely reopened that we only discover how serious the trend is. Posted by Globes, Israel business news – en.globes.co.il – on March 21, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021