There is a concern on the street that the fallout of the property market in the United States and the losses of wealth for potential buyers has harmed Israel’s luxury market.
Evidence indicating that those who have the means to invest in luxury units in Israel continue to do so. As a sales representative for the Jerusalem of Gold project on Akiva St. in the center of Jerusalem, Jerusalem’s most exclusive and luxurious project is already 45% sold before completion, and the project is about to begin digging its phase two tower. The two terraced penthouses in Jerusalem of Gold are still available, the penthouse priced at 20 million.
According to Ynet news, Tel Aviv’s luxury G Tel Aviv Tower recently sold two flats for 19 million; “What we see here is a price increase of $500,000 – 25%, compared to deals signed about half a year ago,” says project’s marketing manager, Sharon Muman. “This deal basically completes the sales of the entire project, which has one last penthouse left.”
Contractors are reporting a shift in sales to the positive with buyers from european nations purchasing in the luxury tower market. The slump of ten months after the October 2008 crash has already begun to turn with Israel being one on the hottest world markets. The project manager of Jerusalem’s “Supreme” project recently sold 17 units, buyers paying 75-100% of purchase price up front.
One professional real estate investor commented that her holdings in Israel were all strong, while her US investments have all plummeted.