Bruce Feiler - Where God Was Born, Abraham, Walking The Bible

Trump Tel Aviv
Friday, March 16, 2007

This trend is hardly new, but the NYT gives renewed attention to Americans buying getaway homes in Israel.

Indeed, from downtown Tel Aviv to the heart of Jerusalem, foreigners — especially Americans — searching for second homes are redefining Israel’s high-end real estate market. Part of Tel Aviv is, in fact, in the midst of a mini-Manhattan makeover with the recent arrival of New York-style residential projects designed by the likes of Philippe Starck and Richard Meier. Even Donald Trump has entered the Tel Aviv marketplace with plans for a 70-story residential and commercial tower — Israel’s highest — in the suburb of Ramat Gan.

Real estate analysts estimate that while foreigners made up less than 5 percent of total home buyers in Israel last year, they snapped up a third of the luxury properties — roughly defined as those priced above $500 a square foot. Taking advantage of a decrease in terrorism and property prices still far below Western levels, foreigners bought over $1.2 billion in Israeli real estate in 2006, according to the Israel Central Bank, more than double the $445 million in sales just three years earlier.

While deals like the $13 million purchase of a Tel Aviv triplex by Shari Arison, the Carnival Cruise Lines heiress, illustrate the upper end of the market, most foreign buyers are far more modest. But their desire for larger properties appears to be growing.

“The Americans have shifted from buying one- to two-bedroom to four- to five-bedroom apartments over the past half decade,” said Werner M. Loval, managing director of the Jerusalem office of Anglo-Saxon Real Estate in Jerusalem, one of Israel’s largest real estate agencies. “But they’re still usually spending from about $400,000 to $1 million.”

Davyd Tal, the Welsh-born owner of the real estate agency Jerusalem Homes, said that about 65 percent of all foreign buyers are Americans, most of whom are in their 40s and 50s. In Jerusalem, a quarter of all homes sold in 2006 went to foreigners.

Labels: Middle East

Posted by B Feiler at 8:01 AM
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