A change is happening in Israel's real estate industry over the past year as foreign investors - French, Americans, and even English - have entered the stagnant market. We are hear more about foreign investment in Israeli real estate, especially for luxury homes. Major reasons for the rising demand from Western countries are the strengthening euro, which increases the buying power of European investors; the slump in Israeli real estate prices, especially for office and commercial properties; Israel's economic growth; a steady rise in anti-Semitism around the world; and, most important of all, a change in Israel's diplomatic and security circumstances, which has boosted optimism among foreign investors, especially since Prime Minister Ariel Sharon unveiled his disengagement plan last year.
In her first media interview, Anglo-Saxon chairperson Zvia Elazarov-Leviev told "Globes" that Anglo-Saxon Real Estate Agency Ltd. plans to conquer the foreign investor market, and develop Israel's real estate industry by initially approaching American and French Jews, and later Jews from other countries.
Since 1994, Anglo-Saxon has been owned by Africa-Israel Investments (TASE: AFIL) (51%) and Migdal Insurance (TASE: MGDL) (49%). Elazarov-Leviev, the daughter of Africa-Israel chairman Lev Leviev, joined the company in 1997 as director of marketing advertising, when she was 20. She entered the real estate business in 2002, when she took over as Anglo-Saxon chairman from Pinhas Cohen, who now serves as CEO of Africa-Israel.
Anglo-Saxon is now in advanced negotiations to collaborate with US real estate firm Sheldon Good & Company, owned by the Good family. The company's website states, "Since 1965, Sheldon Good & Company has sold over 37,000 properties from coast to coast, throughout Canada and the Caribbean for a total value of over $8 billion." The company markets properties through public auctions, and claims an 85% success rate.
Elazarov-Leviev says, "We plan to open Anglo-Saxon's main office in New York. The New York branch will expose Israeli projects marketed by Anglo-Saxon to US Jews, both second-hand apartments and commercial property. This is a breakthrough by the agency to new markets overseas, which is essential at a time when Jews in the Diaspora, especially in wealthy countries including the US, are more than ever showing great interest in buying property in Israel for homes or as an investment. In the next stage, we hope to expand the concept to France and other countries."
"Globes": This overseas expansion resembles the path taken by your father, Lev Leviev, for Africa-Israel. Is Africa-Israel a model for Anglo-Saxon?
Elazarov-Leviev: "Absolutely. Africa-Israel developed rapidly in recent years, mainly thanks to its global and daring perspective. I intend to instill these features in Anglo-Saxon, to turn it into a global chain."
Published by Globes [online], Israel business news - www.globes.co.il - on February 13, 2005