This year, for the first time, Bank of Jerusalem (TASE: JBNK) will tak part in two apartment fairs in the US. The fairs, to be held in Boston and New York, will feature housing projects by leading Israeli construction companies. The bank’s international branch will make various offers of financing and professional counseling to buyers. In addition, Bank of Jerusalem deputy managing director and manager international division Stuart Hershkowitz will give lectures on the financing process for buying an apartment in Israel to large audiences in the Jewish community of New York State.
The Bank of Jerusalem is Israel’s largest mortgage bank for foreign residents.
Real estate activity by foreign residents has surged over the past year. Hershkowitz predicted that growth would continue, and that the trend was only beginning. “Foreign residents are aware that apartment prices in Israel have fallen in recent years, while interest rates are still fairly low. Deals are therefore good for them. Zionist motives, which are a significant factor in the decision to buy an apartment, should also be mentioned,” he said.
”In the past, deals of over $1 million were rare. Recently, however, deals of this size have been carried out at one bank every week or two. This is further evidence of burgeoning demand among foreign residents. Most of the deals, especially in Jerusalem, are still by American Jews, but the proportion by people in the UK and France is continually rising,” Hershkowitz stated.
Foreign residents are buying apartments in specific regions. In Jerusalem, they are buying housing in Rehavia, Baka, old Katamon, and Sha’arei Hesed. Other focuses of interest include Ashdod, Caesarea, and Herzliya Pituah.
Despite the steady drop in apartment prices in 2004, prices in areas in which foreign residents are buying apartments have remained stable, or even risen. Hershkowitz cites Rehavia, Katamon, and Talbieh in Jerusalem as examples of Jerusalem neighborhoods in which prices rose 15-20% over the past year.
Published by Globes [online], Israel business news - www.globes.co.il - on March 13, 2005