Israel may not be top of the list for many overseas property investors from Southeast Asia, but there are some good reasons why it should be under consideration.
One project, The Meier-on-Rothschild Tower, is known as the ‘One Hyde Park’ of Israel and has released three penthouses for a combined £50 million. Having already sold 85 percent of apartments within the tower, it achieved record total sales in excess of £165 million.
Located in the heart of Tel Aviv, buyers and investors have been attracted to the ‘white city’ by its sprawling golden beaches, tree lined streets, year-round warm climate and Mediterranean ambience.
Here’s why investors from Southeast Asia should be considering an investment in this part of the world.
Yigal Zemah, the Chief Executive Officer of Berggruen Residential, said: “Second only to Silicon Valley in the technology sector, Tel Aviv is home to a number of the leading technology firms, including Google, IBM and Microsoft, which attracts visitors from all across the world.
“Due to their prominence in this sector, businessman and delegates from Singapore, China and Japan visit Te Aviv regularly, with many travelling on lengthy secondments.
“The Meier-on-Rothschild Tower is the perfect residential base for them as it is located within the main business district on one of the most popular boulevards in the city.”
Developed by Berggruen Residential and designed by Pritzker prize-winning international architect Richard Meier, the iconic 42-storey Meier-on-Rothschild Tower has attracted a multitude of wealthy purchasers, with five apartments recently sold at a combined £8 million. Buoyed by a strong property and tourism market, Tel Aviv attracts over 16 million visitors annually.
Tel Aviv’s prime residential market has grown by 75.4 percent in the past five years, as international buyers are attracted to warmer climates and good potential investment returns, with luxury developments, such as the Meier-on-Rothschild Tower, proving popular.
As the business and financial centre of Israel, Tel Aviv attracts a multitude of national and international investment, which has led new-build properties to be highly popular, as investors look to be close to business interests.
Currently, Israel has the highest density of tech start-ups in the world, which attracts more venture capital dollars per-capita than any other country. This status has attracted a number of global technology companies, with Intel employing almost 10,000 people in Israel, as well as Google, IBM and Microsoft all having Research and Development centres in the country.
Israel also boasts a high number of high net-worth nationals, including one of the regions only female billionaires, Shari Arison, who also fuel the Tel Aviv property market, as they flock to the multicultural commercial and leisure hub.
Forbes magazine recently reported that Israel boasts 18 billionaires, with a combined net worth of US$51.75 billion, placing them as the second highest contributor to the Middle Eastern billionaire list.
Overall, Israel contributes five of the top 10 net worth billionaires in the Middle East. Israel also has a large amount of millionaires, in relation to the countries size, with over 11,000 millionaires.
According to Zemah investment in Tel Aviv property will continue to grow.
He said: “The Tel Aviv market is booming as it is the hub for culture and business and it is by the sea. The demand comes from both local buyers and international buyers who want to live in Tel Aviv as they second home.
“The supply for high-end housing is scarce since it is very hard to find a prime location plots and even harder to build high quality towers.
“With nine months of warm weather, the climate is a major attraction, as well as the quality of luxury developments across the city.
“Our vision for the tower is to develop one of Israel’s most luxurious super-prime residential developments to provide homes – for national and multi-national buyers.
“We have had amazing sales successes, with only a few apartments and three of the luxury penthouses remaining.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
