_
Demand for apartments: "Rehovot is on the verge of a boom"
"Jewish year 5765 (2004-05) is drawing to a close, making a retrospective of Israel’s residential property market in order. The year saw high demand for lots zoned for high-density housing, which increased competition and prices for these lots. Demand for residential lots spread from the center of the country north to Netanya and south to Ashdod. A recent Israel Land Administration (ILA) tender for four lots zoned for 616 housing units in the Ir Yamim neighborhood in Netanya attracted 23 leading contractors. Gmul Real Estate (1999) Ltd. won the tender, offering $72,000 per land per apartment, plus $18,000 for development costs. Other contractors were astonished, since Gmul will have to sell the apartments for $260,000-280,000 each to make a profit, considered very high for the area, especially given the large supply of apartments.
In Ashdod, YH Dimri Construction & Development Ltd. and a partner took the market by surprise when they bought a 277-dunam (69.75-acre) seaside lot near the marina for $57 million in cash.
The common denominator between Ashdod and Netanya is that both are coastal cities and a focus of attraction by French investors and immigrants with euros to spend and growing purchasing power, making an investment in Israel no big deal. Rising anti-Semitism in Europe and the improvement in Israel’s security climate are also factors boosting demand for, and construction of, seaside residences.
Another city attracting Diaspora investors, this time mainly Americans, is Jerusalem. The city’s residential market has been flourishing over the past year, and many projects, dubbed “white elephants” during the intifada, are now generating handsome profits for their owners. For example, Isras Investment Co. Ltd. (TASE: ISRS) and Rassco Rural and Suburban Settlement Co. Ltd. were able to market a quarter of their luxury YMCA project 42 apartments at an average price of $725,000 per apartment for a gross profit of NIS 80 million.
Ashdar general manager Shraga WasemanYitzhak says that the difference in demand for lots between outlying areas and central Israel widened last year. “Today, developers in general aren’t interested in deals in outlying areas. Demand for apartments in Tel Aviv was stable this year at $90,000 per room. I think that Rehovot is on the verge of a boom. I expect to hear that what happened in eastern Netanya will occur in Rehovot, now that Rabin Highway (Highway No. 6), also known as the “Cross Israel Highway” has made it accessible.” Ashdar is a subsidiary of Ashtrom Properties Ltd. (TASE:ASPR).
“Petah Tikva is also undergoing a boom, especially in the Em Hamoshavot neighborhood in the eastern part of the city, which has land for 10,000 housing units, of which 3,000 have been built and sold for an average of $210,000 per four-room apartment. Em Hamoshavot isn’t branded as part of Petah Tikva, but as a suburb of Tel Aviv and Hod Hasharon.”
Hod Hasharon has become and interesting city in the past year. The Haifa residential market went into hibernation this year, except for one significant deal, in which Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) bought land for the construction of 1,050 housing units in the Ramat Haviv neighborhood at the city’s southern entrance.
Source: Guy Yamin. Ashdod, Netanya focus of residential interest: Foreign investors are very interested in Jerusalem, but the slump in outlying areas shows no signs of letting up. www.Globes.com (2 October 2005) [FullText]
In Ashdod, YH Dimri Construction & Development Ltd. and a partner took the market by surprise when they bought a 277-dunam (69.75-acre) seaside lot near the marina for $57 million in cash.
The common denominator between Ashdod and Netanya is that both are coastal cities and a focus of attraction by French investors and immigrants with euros to spend and growing purchasing power, making an investment in Israel no big deal. Rising anti-Semitism in Europe and the improvement in Israel’s security climate are also factors boosting demand for, and construction of, seaside residences.
Another city attracting Diaspora investors, this time mainly Americans, is Jerusalem. The city’s residential market has been flourishing over the past year, and many projects, dubbed “white elephants” during the intifada, are now generating handsome profits for their owners. For example, Isras Investment Co. Ltd. (TASE: ISRS) and Rassco Rural and Suburban Settlement Co. Ltd. were able to market a quarter of their luxury YMCA project 42 apartments at an average price of $725,000 per apartment for a gross profit of NIS 80 million.
Ashdar general manager Shraga WasemanYitzhak says that the difference in demand for lots between outlying areas and central Israel widened last year. “Today, developers in general aren’t interested in deals in outlying areas. Demand for apartments in Tel Aviv was stable this year at $90,000 per room. I think that Rehovot is on the verge of a boom. I expect to hear that what happened in eastern Netanya will occur in Rehovot, now that Rabin Highway (Highway No. 6), also known as the “Cross Israel Highway” has made it accessible.” Ashdar is a subsidiary of Ashtrom Properties Ltd. (TASE:ASPR).
“Petah Tikva is also undergoing a boom, especially in the Em Hamoshavot neighborhood in the eastern part of the city, which has land for 10,000 housing units, of which 3,000 have been built and sold for an average of $210,000 per four-room apartment. Em Hamoshavot isn’t branded as part of Petah Tikva, but as a suburb of Tel Aviv and Hod Hasharon.”
Hod Hasharon has become and interesting city in the past year. The Haifa residential market went into hibernation this year, except for one significant deal, in which Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) bought land for the construction of 1,050 housing units in the Ramat Haviv neighborhood at the city’s southern entrance.
Source: Guy Yamin. Ashdod, Netanya focus of residential interest: Foreign investors are very interested in Jerusalem, but the slump in outlying areas shows no signs of letting up. www.Globes.com (2 October 2005) [FullText]
0 Comments:
Post a Comment
<< Home