Foreign residents dominate Jerusalem luxury homes market

Two recently completed real estate deals demonstrate how foreign residents dominate Jerusalem’s luxury apartment market.

A 102 square meter, three-room, 27th floor apartment with a 24 square meter balcony in the Savion View project was sold to a foreign resident for NIS 7.55 million, reflecting a price of NIS 74,000 per square meter. The apartment only looks out in one direction and has two parking spaces and a storage room.

Savion View is in downtown Jerusalem on Raoul Wallenberg Street between Jaffa Road and Hanevi’im Street. Jerusalem’s city center has been flourishing in recent years following the introduction of the light rail which runs along Jaffa Road. Savion View is within walking distance of the Old City and the Western Wall, Makhnei Yehuda market and the Jerusalem Great Synagogue. Several high-rise luxury apartment buildings are being built in the area and the price paid reflects the market value.

Talbieh Residence

Another recent deal in Jerusalem involved a 105 square meter, three-room, second floor apartment with a 12 square meter balcony room, storage room and parking in Talbieh Residence, which was sold for NIS 7.4 million, reflecting NIS 70,400 per square meter. The entire project has a mix of 3,4,5 and 6 room apartments either full finished or in shell condition.

Talbieh is considered Jerusalem’s most exclusive neighborhood with old stone buildings for preservation. Talbieh Residences is close to the Jerusalem Theater, the President’s Residence and its excellent location was the most important selling point in closing the deal. The price was high but by no means a record for the neighborhood and there have been many more higher-prices deals.

The customers

There is high demand for luxury apartments in Jerusalem at prices similar to Tel Aviv. The customers prepared to pay these prices are usually foreign residents, most of them traditional or orthodox with a specific love of Jerusalem.

With Savion View the buyers are looking for a home in the capital and are prepared to pay the high price and 45% of the buyers are foreign residents from the US. In Talbieh Residence all the buyers are foreign residents, 90% of them from the US.

The author is founder and CEO of Dara Project Marketing

Published by Globes, Israel business news – en.globes.co.il – on December 7, 2022.

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