Israel Real Estate News

A THREE-BEDROOM DUPLEX IN A BAUHAUS BUILDING

2009-07-15T10:33:00.000+03:00

In recent years Tel Aviv’s real estate values have risen slowly and steadily. In 2003, the average price of an apartment was 896,100 shekels ($226,374); in 2008, it was 1,205,400 shekels ($304,509), according to the Central Bureau of Statistics, a government agency.

The economic downturn has slowed the market. By the middle of 2008, “the market froze,” Yoram Indik, a Tel Aviv-based real-estate broker, said. “People didn’t want to sell, buyers didn’t want to buy.”

But even though the pace of sales has slowed, housing prices are generally still on the rise. For the first quarter of 2009, the average price of an apartment was 1,283,000 shekels ($324,113) according to the Central Bureau of Statistics.

Sharp drop in number of Israeli millionaires

2009-06-29T22:33:00.000+03:00

The report also reveals that while the number of people with more than $1 million in net assets fell 14.9%, the number of millionaires in Israel dropped by an almost double rate of 28%.

A millionaire is defined as a person people with net assets of more than $1 million excluding their main home and everyday possessions. The report ranks an ultra-rich as a person with at a fortune of more than $30 million.

According to Merrill Lynch, the number of ultra-rich in Israel dropped from 97 to 73 in the past year – down 24.6%.

Israeli company in talks to take a £100m stake in British Land's

2009-06-20T16:58:00.000+03:00

A company owned by one of Israel's richest men disclosed yesterday that it is in talks to buy a stake in the City of London's famous Broadgate office complex from British Land.

Property and Building, which is controlled by Nochi Dankner, the billionaire, said in a statement to the Tel Aviv stock exchange that it was in the initial stages of buying a stake in Broadgate for £100 million. Harel, Israel's third-biggest insurance company, said separately that it was looking at investing about £45 million.

TheMarker U.S.-Israel business summit, June 24-25, NYC

2009-06-17T14:10:00.000+03:00

Last year's Summit was held at another well-known New York landmark - the Plaza Hotel, overlooking Central Park. Guests included then opposition leader and current prime minister Benjamin Netanyahu, New Jersey Governor Jon Corzine, former Citigroup Chairman and CEO Sanford Weill, Prof. Nouriel Roubini and Donald Trump.

Israeli CEOs earned more as profits shrank

2009-06-16T16:38:00.000+03:00

While investors have had to come to terms with the decimation of profits at some of Tel Aviv's biggest companies, that can't be said of the top managers.

In 2008 the combined profit of the companies listed on the TA-25 index, which tracks the biggest 25 listed companies by market capitalization, dropped by 40% from the year before. That's sobering stuff.

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Yet the average salaries of these companies' CEOs rose by about 30%, to NIS 7.9 million in 2008 (in terms of wage cost), according to a study by the remuneration department at PricewaterhouseCoopers Kesselman & Kesselman.

Fishman: The price of apartments in Israel is about to rise by 10%.

2009-06-14T19:56:00.000+03:00

Real estate developers Eliezer Fishman and Chaim Katzman, who both have investments around the world, in virtually every sector, were the first guests in "Globes" real estate forum. Eliezer Fishman is the controlling shareholder in “Globes”.

Is it not worthwhile investing at home now that the entire world is so stormy?

Fishman: There aren't any opportunities here. In the last recession in Israel (2001-2003) I had 400,000 square meters empty. In this recession I don't have 100,000 square meters empty.

Katzman: We don't sees any changes and if anything there is a strengthening. We are now seeing the shopping mall in Kfar Saba being occupied very successfully.

Fishman: The price of apartments in Israel is about to rise by 10%.. Nobody will build for a 4% margin. So either construction will stop altogether or the price will rise 14%. An apartment that you find today for NIS 1 million will be worth NIS 100,000 more, not in two years time, but in another five months

President of Israel's Gazit-Globe resigns

2009-06-12T00:43:00.001+03:00

TEL AVIV, June 10 (Reuters) - Israeli real estate investment company Gazit-Globe Ltd (GLOB.TA) said on Wednesday its president, Michael Bar Haim, was stepping down.

He has held the position since January 2008.

Bar Haim will remain president for a period to be agreed upon with the company, Gazit-Globe said in a statement, adding that the board will announce a temporary replacement in the coming days.

The company did not provide further details.

Gazit-Globe operates in the United States through Equity One Inc (EQY.N), in which it owns 40 percent, and in Canada through 54 percent-owned First Capital Reality Inc (FCR.TO). It is also the largest shareholder in Finland's Citycon (CTY1S.HE) and last year it took over Atrium European Real Estate (ATRV.VI).

Real estate market collapses

2009-05-22T16:49:00.002+03:00

According to the survey, 2008 saw 91,500 apartment purchases, down 6% compared to 2007, and new apartment acquisitions were down 14% in 2008. Only 19,000 new apartments were purchased last year, or 21% of the entire market.

The average figures for 2008 seem reasonable, but focusing on the market performance of the last quarter of the year when the major real estate crisis in the U.S. began to unfold reveals that nearly all parameters point to a real collapse. That quarter saw just 15,100 transactions, down 43% compared to the fourth quarter of the year before, and the lowest quarterly figures since the economic recession of 2002.

Real estate experts: An overview of the Israeli market

2009-05-17T15:08:00.000+03:00

Israel Property founders Jonny Baker and Jonny Gaon - two native English-speakers - established their business with the simple concept of making the process of purchasing real estate in Israel easier for the overseas buyer. As more foreign residents and non-Hebrew speakers purchase and rent property in Israel, the practical issues involved in finding the right property can be daunting. Israel Property facilitates the often frustrating and time-consuming process of dealing with multiple agents in a foreign country and provides guidance from A to Z.

Land reform? Tread carefully

2009-05-11T01:41:00.000+03:00

Almost all of the land in Israel - 93 percent - is either the property of the state, the Jewish National Fund, or the 1950s-era Development Authority for abandoned Arab property. Whatever the case, the Israel Land Administration (ILA) is the government agency responsible for managing all land in the public domain. Ownership of real estate in Israel typically means leasing rights from the ILA for 49 or 98 years.

One of Prime Minister Binyamin Netanyahu's campaign promises was to reform the ILA in order to bring down exorbitant real-estate prices and reduce housing costs. Besides making homes more affordable, reform seeks to spur a building boom, creating jobs and generating economic growth.

The premier has long advocated "slaying the ILA dragon," simplifying procedures and attracting overseas investors. The idea is to break up the ILA monopoly, transfer leased lands to private ownership, decentralize and give more say to local planning commissions. This intended outcome would mean more efficient land management and a citizenry better served.

Israeli gender equality ranked 53 of 115

2009-05-06T13:56:00.001+03:00

The index used data from the Organization for Economic Co-operation and Development's Gender, Institutions and Development database.

The study, which included five components measuring women's access to credit, real and non-real estate property, inheritances and social rights, found that women in Israel do not benefit from equal rights.

Regarding inheritances and social rights, Israeli women scored relatively high marks, but the overall ranking was lowered by the results for the other three components.

Diaspora Jews' Israel real estate purchases plummeted in 2008

2009-05-05T16:39:00.000+03:00

The global economic crisis has badly hurt property sales to foreign residents. State Revenues Authority data shows that in the fourth quarter of 2008, there was a 40% decline in the number of sales compared to the third quarter - and a 60% decline in comparison with the fourth quarter of 2007.

Much has been written and said about the "invasion" of Diaspora Jews in Israel, but so far few official figures have been released concerning the exact number of real-estate deals they struck or the prices they paid. Apartment purchases by foreign residents accounted for 5% of the overall sales in the country, but have been concentrated in a few specific areas, so their impact has been significant.

Real estate co Azorim sees positive home sales trend

2009-04-30T11:06:00.000+03:00

Azorim Investment, Development and Construction Ltd. (TASE: AZRM), controlled by chairman Shaya Boymelgreen, has laid off 15 employees at company headquarters. Azorim CEO Mati Dov told "Globes" today that the company had no plans to sell properties in Israel at this time as part of its streamlining measures.

Including previous layoffs, Azorim has now let go 25 employees, a quarter of its workforce. The company has laid off headquarters, project management, marketing, and bookkeeping staff. The savings from the layoffs will only be reflected in Azorim's results for 2010. Together with other streamlining measures, the company hopes to save NIS 25 million in administrative costs next year compared with last year.

US realty guru: Israel a prime real estate destination

2009-04-23T20:26:00.000+03:00

Considered an industry guru, Buffini owns the biggest real estate and business coaching and training company in the US. He arrived in Israel recently to lecture to local real estate agents.

The business of real estate, he told his listeners, can thrive even in these troubled times. Buffini's teachings advocate using networking and existing business contact, rather than costly advertising, to drum up business.

Realtors, he said, must take the time and invest in creating personal relationships: Every person, on average, knows about 285 people, so if you invest in cultivating 100 relationships, you can increase you potential cliental by 28,500 people.

Africa Israel to sell Tel Aviv property

2009-04-22T13:49:00.000+03:00

TEL AVIV, April 22 (Reuters) - Africa Israel Properties (AFPR.TA), a subsidiary of real estate developer Africa Israel Investments (AFIL01.TA), said on Wednesday it has agreed to sell a Tel Aviv property for 166.5 million shekels ($39.5 million).

The company said it will sell 95 percent of the Africa Israel Tower in central Tel Aviv and 50 percent of the unused building rights in the property to an entity controlled by foreign investors.

Upon completion of the deal Africa Israel will record a pretax capital gain of 17 million shekels.

The buyer has two-year options to buy the remaining 5 percent in Africa Israel Tower for 7.7 million shekels and the remaining 50 percent of the unused building rights for 20 million shekels.

Police drops Olmert's real estate case

2009-04-18T22:03:00.000+03:00

Israeli police have closed one of the investigations into outgoing prime minister Ehud Olemrt's corruption scandals, citing lack of evidence.

The case looked into allegations around a suspicious real estate deal, saying Olmert -- then the mayor of Jerusalem (al-Quds) -- purchased a home in an exclusive neighborhood in the city far below market price in exchange for favors to the builder.

Police spokesman Micky Rosenfeld said on Thursday that the "Cremieux Street case" had to be dropped as the police had not been able to find evidence "that illegal acts were carried out on behalf of Ehud Olmert."

Mounting criticism of Olmert's poor performance during incumbency in the Israeli cabinet as trade and industry minister (2003-2006) along with his mistake-riddled period in prime minister's office and particularly during the 2006 Lebanon war led him to announce his resignation in September.

Fischer revived the stock market and kept real estate prices up

2009-04-17T21:37:00.000+03:00

It is still hard to predict whether the repeated lowering of interest rates by Bank of Israel Governor Stanley Fischer has contributed to increased employment and economic growth or to the reduction in the cost of credit for the business sector. However, it can safely be said that Fischer's actions have indeed worked in two areas: housing prices and the stock market. Tel Aviv stocks hasverecovered sharply since the beginning of the year, and bond prices have rebounded impressively. The TA-100 is up 27% so far this year, and real estate and shares are up even more.

What has happened on the TASE over the past few months is the result of a number of developments - and certainly not just due to lower interest rates. But the rates, which are nearing zero, also have had a major influence. The lack of serious alternatives to stocks, such as bank deposits, bonds or money-market funds, has forced investors back into the stock market - and has also affected

Jerusalem, Israel Real Estate

2009-04-15T18:20:00.001+03:00

S&P Maalot puts Gazit bonds on credit watch neg

2009-04-13T19:54:00.000+03:00

TEL AVIV, April 13 (Reuters) - Standard & Poor's Maalot said on Monday it has placed bonds of Israeli real estate investment firm Gazit-Globe Ltd (GLOB.TA: Quote, Profile, Research) on "credit watch negative", citing an erosion in the company's financial situation.

S&P Maalot noted that the company made large write-offs in the fourth quarter due to a decline in the value of its property for investment.

Gazit-Globe posted a fourth-quarter net loss of 865 million shekels ($209 million), compared with a net profit of 105 million a year earlier.

"We plan to examine over the near term the worsening in the financial situation, the forecasts for the coming years and the appropriateness of the current ratings," the ratings agency said in a statement.

The current Real Estate 15 Index companies have an aggregate cap of NIS 13 billion

2009-04-11T23:11:00.001+03:00

The real estate bubble that began in 2003 burst in the summer of 2007 with the sub-prime mortgage crisis in the US, which led to the global credit crunch and worst crises in the financial markets and real economies in 80 years. The real estate collapse left a wasteland in its wake, devastating the shareholders and bondholders of companies.

The current companies in the Tel Aviv Stock Exchange (TASE) Real Estate 15 Index had an aggregate market cap of NIS 13 billion at the end of 2008, less than half the value of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) alone - the leading company in the index - which had a market cap of NIS 28.5 billion at its peak in May 2007.

Africa Israel empire, sold his holdings in the Ramat Aviv mall

2009-04-10T00:06:00.000+03:00

At least, a memorandum of understanding has been signed, pricing the mall at NIS 1.53 billion. "I called Yossi [Perry, Melisron CEO] to congratulate him and wish him the best of luck. They bought the best mall in Israel," said Moshe Rosenblum, leader of British Israel's malls division. British Israel had also been in the running for Ramat Aviv, he said, but decided to bow out because it was "too perfect" - the group couldn't "better" it, meaning, make improvements and sell it onward for a profit.

Rosenblum adds that the rental prices that businesses at the mall pay are sky-high, and he doubts that the return on investment can be seriously improved. Possibly returns on the mall could be bettered by opening it on Shabbat, but at this stage, says the mall's management, there's no such plan in the works.

Leviev is far from being the only businessman making moves to ease liquidity, whether in order to pay back bondholders, banks and other creditors or to improve financial ratios. These are hard times, the global economy is contracting hard and jittery banks are clenching their fists. If once, companies - including some decidedly iffy ones - could routinely take out fresh loans to repay old ones, that isn't the case any more.

Netanyahu arrives, the market celebrates

2009-04-03T12:17:00.000+03:00

The optimism on Wall Street over the past few days spread to Tel Aviv yesterday, and the local market responded with big gains.

Yesterday the Tel Aviv Stock Exchange hit its highest level in five months as the TA-25 index of blue-chips jumped 5.3% to close at 765 points, and the broader TA-100 rose 1.1% to end the day just under the 700 barrier at 699 points

The Real Estate-15 index was up 5.7% for the day, and has now gained 50% so far in 2009. The recovery in the corporate bond market has had a good effect on the highly-leveraged real estate sector, and Africa Israel gained 9.2% yesterday, with the company's bonds gaining 7% in price.

Leviev`s company loses NIS 4.8 billion in 2008

2009-04-01T00:32:00.001+03:00

Lev Leviev's Africa Israel Investments lost more in the fourth quarter of 2008 than in the previous three quarters combined.

Annual losses for 2008 totaled NIS 4.8 billion, with NIS 2.7 billion sustained in the final quarter. In 2007, Africa Israel netted some NIS 4.4 billion, thanks largely to the floating of Russian subsidiary AFI Developments. The main reason for last year's massive losses was the crash in real estate values in the United States and Russia. Africa Israel issued a profit warning earlier this month, so the company's bottom line came as no surprise to investors.

The depreciation in the inventory of Africa Israel's land and buildings for sale contributed NIS 1.3 billion to the company's losses, and projects under construction lost NIS 2 billion of their value.

Africa Israel's fourth quarter revenues totaled NIS 1.2 billion, compared to NIS 2.8 billion in the parallel. Most of the revenues came from land and construction deals.

Delek Real Estate loses NIS 1.98b

2009-03-31T23:42:00.000+03:00

Yitzhak Tshuva's real estate arm posted a net loss of NIS 1.98 billion in 2008, compared with a net profit of NIS 608.7 million in 2007. The net loss attributable to majority shareholders was NIS 1.64 billion in 2008, compared with a net profit attributable to majority shareholders of NIS 308.2 million in 2007.

The company's revenue plummeted 83% to NIS 707.5 million in 2008 from NIS 4.38 billion in 2007. The company attributed most of the 2008 loss to NIS 745.9 million in write-down on investment properties, compared with upward revaluations of NIS 758.8 million in 2007.

Israel's Olmert cleared in real estate deal

2009-03-29T09:32:00.000+03:00

JERUSALEM (AP) — Israeli police on Thursday said they had dropped a criminal investigation into a real estate deal by Prime Minister Ehud Olmert, just days before he leaves office, citing lack of sufficient evidence.

Four other cases against Olmert are still pending.

In the real estate inquiry police investigated allegations that Olmert bought a home in an exclusive Jerusalem neighborhood at a steep discount in exchange for granting favors to the builder. The alleged deal occurred while Olmert was Jerusalem mayor, years before he became prime minister in 2006.

Police spokesman Micky Rosenfeld said the case was closed on Thursday after an investigation showed no "concrete evidence of illegal acts in this case."