When we entered Corona and throughout the last 2 years, we believed that we would see the prices decrease and many would take their properties off the market or decide not to sell or rent. We were proven wrong big time. During Corona, and now that we are sort of out of the woods, we are witnessing that the real estate market was and is booming. Properties are being put on the market for extraordinary prices and being sold like hot potatoes.
For example, a property on Rivka was sold in February for 2.15M NIS. The buyer decided for various reasons to sell the property already in June and it was put on the market last Thursday. Before anyone could say ‘boo’ the property is already being sold at 2.5M NIS (for the asking price).
Another example that specifically YYK Real Estate is involved in, is in the ‘Ganei Zion’ complex. In this deal, after putting it on the market, it went to the lawyers the next day. Of course, that’s not the only surprise, the price is breaking a record regarding the price per meter. These are just two examples out of many.
You may be asking how and why this is happening? Well, I’m here to explain. To put it simply, when there’s a high demand and a very low supply, this is the outcome. The main demand is coming from the United States, the UK and Australia, and of course the French. Jerusalem is a city, but a very small one (almost like a big kibbutz). No matter how many buildings will be built, the demand will always be high!
Back in the day, the way to make money was to do a flip. This meant buying a property that needed renovations for cheaper due to the fact that it needed work, renovating it and selling it for a higher price. Through this, you’d make a nice amount of money. Well, those days are pretty much over due to the following factors
Until a week ago, if you bought a new property on paper and you went by the 20/80 payment schedule, you got screwed by the ‘cost of building index.’ Let me explain. ‘The cost of building index’ means that if the materials of a building being built were increased, such as wood, metals, tiles, etc., the buyer carried the burden of paying that extra cost. In a standard 150 sqm apartment, this meant...
What a year it was in 2021. Looking back at 2021, we can summarize the year regarding real estate as becoming a sellers’ market. The prices went up in Israel by around 10% and in Jerusalem specifically around 9% at least. No one thought that this would be the outcome of a year filled with ups and downs with Corona, and closures in travel. Sow how did this happen? We believe that Black Lives Matter had...
Have you been lately in the City Center of Jerusalem? If you haven’t been, you should come and see it for yourself; you wouldn’t recognize it. Builders and developers have painted the town red with new and exciting construction of high-quality buildings. We can start with ‘Africa Israel’ with their project on Harav Kook St. The location is fantastic, it’s quiet, and right off of Ben Yehuda,...
