Foreign residents are continuing to buy Israeli apartments in group purchases. Rotem Shani Development and Investment (TASE: RTSN) yesterday reported that it has begun marketing its latest project in Beit Shemesh and begun its presale campaign by selling 64 apartments to a buyers group of modern haredi Jews based in New York and New Jersey.
The Savion project in Beit Shemesh is an urban renewal project in what is called the 'Eden Area' covering 22 dunams (5.5 acres) on which 542 apartments will be built, of which 469 are being marketed with the remainder allocated to homeowners whose apartments were demolished to make way for the new project. The project consists of three 26-floor buildings and two nine-floor buildings as well as commercial space and public buildings. The project has received demolition and earthworks permits and the company is in the process of obtaining building permits.
According to Rotem Shani's report, the company has signed binding sales contracts with 49 buyers while an additional 15 apartments are being registered for sale. The average price per square meter of the apartments is NIS 23,200 (including VAT) and four-room apartments are being sold for NIS 24,500 per square meter (including VAT).
This is a significant number of apartments to be sold at once to a group of US Jewish foreign-resident buyers. According to Rotem Shani's reports for the second quarter of 2024, the company sold during the first half and after the balance sheet date a total of 60 housing units, of which 27 housing units were in the first quarter of the year and 15 housing units in the second quarter, and after the balance sheet date 15 apartments were sold and three apartments in the project are in the process of being registered as sold.
A rise in apartment purchases by foreign residents
"Globes" recently reported about the rise in group purchases of homes in Israel by Diaspora Jewish communities. For example a group of Iranian Jewish buyers purchased 42 apartments in Kiryat Ono for NIS 190 million.
The Savion project in Beit Shemesh is being developed jointly by Rotem Shani and M.Y.D.R. Psagot - Hasavion.
Published by Globes, Israel business news - en.globes.co.il - on September 30, 2024.
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