Monday, May 4, 2015

Israel home prices up 97.3% since 2007

Home prices in Israel rose by an average of 9.6% a year between 2007 and 2014, according to figures presented by Bank of Israel Deputy Governor Dr. Nadine Baudot-Trajtenberg at Tel-Hai College. She said that the home-price index rose by 97.3% since April 2007, while the rent-price index rose by 46% over the same period - 5.1% each year.

In real terms, according to the data, apartment prices in Israel have risen 63.9% since 2007 - 6.9% a year. In an international comparison, from 2000 to 2013, Israel ranks roughly in the middle: during the same period, home prices in Canada, Sweden, and the UK rose more, while in the US, Ireland, and Japan, prices rose less, and in some countries home prices decreased.

The deputy governor’s presentation discussed the importance of short term and long term monetary policy, and included details of its roles and areas of activity. Baudot-Trajtenberg examined the macroeconomic developments in the world, and in the Israeli economy, and spoke of the central trends in monetary policy, currency markets, inflation, and economic activity.

Thursday, April 30, 2015

Israeli startup scene on a roll

According to a recently published report from IVC Research Center, Israel’s leading research group on the country’s high tech companies and venture capital investment, Israel’s first quarter this year was the second most successful quarter for high tech fundraising in a decade, 48% higher than Q1 of 2014 and more than twice what was raised in Q1 of 2013. What’s more, it was only 10% less than the decade’s most successful quarter for high tech fundraising: Q4 of 2014.

In the last few years, Israeli internet startups such as Waze and Wix have been all the rage, and that trend is not abating any time soon: With $343 million raised, the country’s Internet sector experienced its most successful fundraising quarter ever in Q1. According to Koby Simana, CEO of IVC Research Center, the high funding rounds of Taboola ($117 million) and Quixey ($60 million) largely contributed to this quarter’s success, as well as the maturation of the sector, with investors willing to raise larger average rounds. In a statement, he explained, “Up to a year ago we were accustomed to seeing average financing rounds of $3 million to $4 million, in the Internet sector.

Friday, April 17, 2015

Light rail construction to disrupt Tel Aviv traffic till 2021

The Tel Aviv municipality has begun preparing for the “messy phase” of the Tel Aviv light rail Red Line works and is planning to launch a broad PR campaign a month before the works begin, after it becomes clear that they will not be delayed again. The city is currently working to identify residents and business owners who are liable to be harmed by the works. Municipality sources said, “There is no avoiding it. It’s not reasonable to expect that works such as demolishing the Carlebach bridge will happen without a significant adverse effect on traffic.”

The construction of five underground stations in Tel Aviv will commence between August and September: Carlebach, Shaul Hamelech, Allenby, Arlozorov, and Yehudit. The first stage of construction will include the excavation of the areas where the future stations will be built. The works are expected to continue until 2021, and while they are underway, traffic throughout the city will be affected. The project site where worst traffic disruption is expected is the Carlebach station project, during construction of which traffic will be redirected from Begin Road, Carlebach, Hamasger, Lincoln, Hataasiya, Hamelacha, Yitzhak Sadeh, and Rival streets.

Begin Road will be closed to traffic in the Carlebach junction area, the Ma’ariv bridge will be demolished, to be replaced by an underpass. Public transport will be adjusted according to the anticipated new traffic arrangements resulting from the works, and will be redirected to Hamasger and Hahashmonaim streets. Dedicated public transport lanes will be opened on these streets. The direction of traffic will be reversed on Hataasiya and Hamelacha streets. The Allenby station works will cause traffic changes on Yehuda Halevy, Mikve Israel, Bezalel Yaffe, Yavne, Shadal and Ramhal streets.

Wednesday, April 15, 2015

Abramovich to turn Tel Aviv hotel into secondary home

Jewish billionaire Roman Abramovich could be spending more time in Israel. The oligarch, ranked the world’s 58th most wealthy person by Forbes, with $12 billion in wealth, has purchased his first property in Israel, Tel Aviv's Varsano Hotel, owned by brothers Guy and Yaron Varsano. The hotel is located between Shabazi Street and Ein Yaakov Street in Tel Aviv’s Neve Tzedek neighborhood.

Abramovich paid NIS 100 million for the property. The lot, which is just 1,500 square meters, includes the landmark hotel which is subject to a preservation order, and an area with a parking lot, which is zoned for additional residential construction. The deal was put together by businessman Eyal Kamir, and Neve Tzedek Real Estate’s Oren Katz. Abramovich was represented in the deal by Hagit Bavly and Ofir Schwartz, of Yigal Arnon & Co., and the Varsano brothers were represented by Shay Rosner and Inna Goldfarb, of Baruch I. Manoach & Co.

Saturday, March 14, 2015

Klagsbald sells his Rotschild Echad flat for ₪44m

Dori Klagsbald recently sold his net 550 sqm 13th floor apartment in the prestigious Rothschild Ehad Tower in Tel Aviv to a foreign resident for NIS 44 million. Klagsbald bought the apartment, with its sea view and three patios, in 2008, before it was built, from Habas HZ Investments Lt that had constructed the tower. Klagsbald himself lives with his wife, Yael Tevet in Kfar Shmaryahu, and the luxury apartment in the tower, designed by architect Pitsou Kedem, has never been occupied. It is believed that Klagsbald made a handsome profit on the current deal. When the tower was marketed in 2008, apartment prices in the tower averaged $10,000-12,000 per sqm, while the current average price per sqm is double that.

Klagsbald's sale of his apartment follows former Bank Hapoalim chairman Shlomo Nehama's recent sale of his apartment in the tower for NIS 45 million. Owners of apartments in the tower, most of whom bought them in 2008, include businessman Idan Ofer and businesswomen Leora Ofer (his cousin), former Bank Hapoalim CEO Zvi Ziv, Fox-Wizel chairman Harel Wizel, former Electra CEO and former Azrieli Group CEO Shlomo Sherf, Colmobil chairman Dr. Shmuel Harlap, Jacob Shahar (owner of auto importer Mayer's Cars and Trucks), Saki Arnon (former wife of the late Adv. Yigal Arnon), and Apax Partners founder Sir Ronald Cohen, who is believed to be behind, together with a group of investors, the recent acquisition of the dolphinarium site from Josef Buchmann for NIS 200 million. In 2010, Iscar chairman Eitan Wertheimer, son of industrialist Stef Wertheimer, purchased an apartment covering all 800 sqm of the 29th floor of the tower, and billionaire Patrick Drahi, the controlling shareholder in Hot Telecommunication Systems, joined the list of those who have purchased an apartment in the tower.

Sunday, March 1, 2015

Tel Aviv voted World's 3rd best place for Tech Business

Tel Aviv is the third best place in the world for technology business, according to a new report by property consultants Savills. Austin took the top spot, followed by San Francisco. Savills surveyed 12 global cities with strong tech environments. The scores were measured according to five metrics: business environment, tech environment, quality of life, talent pool and property affordability. New York, Stockholm and London came fourth, fifth and sixth respectively in the overall ranking.

Interestingly, what has prevented Tel Aviv from reaching the top spot is a low score in quality of life. Surely something that should be easy to fix for a city sitting on the Mediterranean seaside!

Friday, February 13, 2015

Meier on Rothschild sales top ₪1bn


Meier on Rothschild tower which is expected to accept its first occupants within the next 6 months has reportedly sold 130 apartments for not less than NIS 1.028 billion. According to the developer of the tower, Berggruen Residential, an additional 10 flats and 4 penthouses, worth a total of NIS 450 million, are left for sale.

"This is a new Israeli record in terms of revenue for a single building - the previous record being held by Canada Israel for the Midtown residential tower and that raised NIS 900 million", explained a representative from the company. He also indicated that in the last month they witnessed very high sales topping more NIS 60 million. The tower, which sits on Rothschild Boulevard at the corner of Allenby has 42 floors and 140 apartments in total.

When it comes to prices, luxury apartments classified as "normal" are around NIS 9-12 million and duplex penthouse apartment located on floors 41-42 costs about NIS 70 million. There is also a penthouse apartment on floors 38-39 listed at no less than NIS 170 million, and that has been waiting for an owner since 2011. Maintenance costs will be about NIS 17 per square meter.

Read the rest at Ynet

Thursday, February 12, 2015

Tel Aviv municipality seeks to attract foreign start-ups

Israel earned the title of Start-Up Nation long ago, but most of the technology companies are concentrated in the Tel Aviv area. The Tel Aviv municipal authorities have branded the city accordingly, and have recently begun trying to leverage this abroad as well. The Tel Aviv municipality is not satisfied with 1,515 high tech companies that employ 43,000 workers, and is trying to attract more companies and entrepreneurs from abroad to come to Tel Aviv to enrich the local industry.

In recent months, Global City, a Tel Aviv municipality subsidiary, launched a pilot under which it is giving incentive packages to entrepreneurs from abroad, which include complimentary accommodations for a week or two, a free workspace for three months in a start-up complex (such as a library, or Atidim 7, or other municipal-owned building), and professional support and consulting. The companies also receive legal advice, accounting help, and assistance dealing with the Israeli Corporations Authority, and other entities.

Monday, January 5, 2015

Why Tel Aviv’s market has grown 75% in five years

Certain countries garner column inches in inverse proportion to their size. Israel’s presence looms large, both in Middle East politics and wider scientific and cultural arenas, despite an area of just 21,000 sq km, ranked in size between El Salvador and Slovenia. Although it is in the midst of the Middle Eastern conflict, with associated security worries and international censure over the treatment of Palestinians, it is still prominent in the global property market, with the success of its domestic high-tech industry and buyers from the Jewish diaspora fuelling prime residential sales in Tel Aviv. This city’s renaissance over the past decade has brought accolades for its restaurants, nightlife and arts scene. It is also the country’s most densely populated city, with an average of 7,522 people per sq km, compared with 5,750 per sq km in the capital, Jerusalem. Tel Aviv’s prime residential market has grown 75.4 per cent in the five years to the first quarter of 2014, according to research by Knight Frank, outstripping London, Dubai, Paris and New York. The International Monetary Fund, however, suggests prices are unrealistically high, and the bubble must burst.

Founded in 1909, Tel Aviv grew rapidly under the British Mandate, reflecting the tastes of its immigrant population. A stroll through the city’s leafy boulevards today will reveal – among the high-rises – exuberant houses dating from the 1920s, embellished with art-deco elements and eastern flourishes, alongside more sober lines of the Bauhaus School, introduced by German-Jewish refugees in the 1930s. More than 4,000 buildings of this modernist architectural heritage form the basis of Tel Aviv’s White City area, recognised as a world heritage site by Unesco in 2003.

Thursday, January 1, 2015

Top ten Israel property deals of 2014

"Globes" looks back at 2014 and ranks the ten most expensive homes sold in Israel over the past year. Six of the homes were in Tel Aviv, two in Jerusalem and one each in Herzliya Pituach and Ramat Hasharon.

Here is the list starting with the house of Arik Vardi that reportedly used to belong to Baroness Batsheva Rothschild and which is located in the Ramat Aviv neighbourhood:

  • NIS 130.1 million - Check Point Software Technologies Ltd. (Nasdaq: CHKP) founder chairman and CEO Gil Shwed, and "Globes" businessperson of 2014, bought a 560-sq.m. house in the Tel Aviv neighborhood of Afeka in August from ICQ founder Arik Vardi, who had bought the home in 2000 for just NIS 20.8 million.
  • NIS 110 million - Ofer Investments controlling shareholder Leora Ofer bought a penthouse in January in the Herbert Samuel project on Tel Aviv seafront from her own company. The 690-sq.m. apartment covers the 20th and 21st floors and also has a 300-sq.m. patio.
  • NIS 70 million - DEKA, controlled by Jacky Safra bought the 1,700-sq.m. Sherover House in Jerusalem's Talbieh neighborhood in December from the estate of Gita Sherover. Located by the Jerusalem Theater at the junction of Pinsker, Marcus and Dubnov streets, the house sits in a 1.1 acre lot and has building rights for an additional 1,120-sq.m.
  • NIS 45 million - PokerStars CEO Mark Scheinberg bought a 588-sq.m., 10-room apartment in Tel Aviv's Rothschild 1 project in February from former Bank Hapoalim (TASE: POLI) chairman Shlomo Nehama.
  • NIS 43.5 million - Canadian-Jewish businessman Moti Maximoff bought a 13th apartment in Tel Aviv's Meier-on-Rothschild Tower in March. The 800-sq.m. apartment has 48-sq.m. of balconies on the 31st floor of the 42-floor building. He bought the apartment through his company, Ironstone Capital.