Real Estate experts in Israel and abroad predict that the market for luxury properties, luxury houses and luxury apartments in Israel will remain stable for the coming decade, just as it was over the past decade. Wise investors that track properties, for instance luxury apartments in Tel Aviv towers, know that buying an apartment in a tower is a very wise and worthwhile investment, as it will yield good profits.
“Luxury apartments are now in great demand among both local residents and foreign residents”, says Oren Katz, the owner of the real estate agency “Neve Tzedek Real Estate”, the leading real estate agency in Neve Tzedek and the surrounding area. Over the past decade, the agency has specialized in luxury properties in luxury towers and in luxury apartments in and out of Tel Aviv city. “The potential buyers that come to our firm are usually looking for spacious luxury apartments in luxury towers, built according to a high standard of the highest quality, preferring this over a villa outside the city. This is because a luxury apartment in a luxury tower also includes additional services that are very important to these clients. Services include 24-hour security, a magnificent lobby, a fitness center, spa, swimming pool and private parking. An apartment in a luxury tower that includes these specifications in the center of Tel Aviv is considered a highly desirable property among our customers, as the property is expected to yield returns on the investment in it.
There are luxury towers in Tel Aviv that the wisest investors bought properties in “on paper” and today, only a few years after population, these apartments are already worth about 30 percent more that their original value. This trend will continue in the coming decade, and as such, investing in a luxury apartment is currently considered among real estate analysts to be a highly recommended investment that will yield profits.
Luxury apartment developers hire leading architects in Israel (some even use the services of well-known architects from abroad), as well as leading interior designers that specialize in the luxury apartment market. These designers specialize in designing distinctive buildings, These designers are, for good reason, considered artists in their field and they are known to execute their designs perfectly using the highest quality materials.
The results in towers that include special luxury apartments of varying sizes, superbly designed with all possible amenities, from “smart home’ systems, luxury kitchens, top quality accessories from well-known designers, to the option of residents designing their homes privately, and balconies overlooking an urban view of Tel Aviv or an open sea view.
There are some developers who provide the opportunity to purchase half a floor or a complete floor in a building in advance, and then to create a luxury apartment that is the size of an average villa, with all the benefits of living in the city center.
The price of luxury apartments rises over the years. If a few years ago, the average price of a luxury apartment was 5-6 million dollars, the average price for the same size apartment is now 8-10 million dollars. A 250 sq. meter apartment in a luxury tower in the heart of Tel Aviv (for example, the Herbet Samuel Tower), will cost on average of 20 million NIS, and it is not uncommon to find apartments worth 40 million shekels too.
The price of a luxury property can also skyrocket to many tens of millions of dollars, and that can happen if the house or building is situated on very valuable land such as on Herbert Samuel Street near the sea, on Rothschild Boulevard, or on land that has historic value, such as the “Shalosh House” in Neve Tzedek, which is situated in a highly desirable location in Neve Tzedek.