Rehov Hayarkon has buildings that were built in the 1930s, '40s and '50s, and more modern ones too.
By JOHN BENZAQUENBahaus 88 224(photo credit: Courtesy)
Rehov Hayarkon opposite the sea is probably one of Israel's most expensive locations. A few months ago a house in Herzliya Pituach with a minuscule garden was sold for a price that worked out to $29,000 per square meter. It was and still is the highest price paid for a square meter in Israel.
But now this record is set to be broken. In an apartment building that is being built on Rehov Hayarkon - aptly called 96 Hayarkon - the asking price for the two penthouses on the top floor works out to $40,000 per square meter. A new record - at least for the time being .
And this, at least to me, looks excessive.
Not so, according to Daniela Benaim, the manager of the Tel Aviv branch of the POSH Alex Losky real estate brokerage, which deals in marketing expensive real estate.
"The price you quote may be high, but it is not overly excessive," she said. "You have to realize that in the past 10 years there has been a tremendous expansion of private wealth in this country. Israelis can now affords multimillion-dollar homes, and they are indeed buying multimillion-dollar apartments in such projects as Rothschild 1, the G Tower and the Roof Top residences.
But the main potential buyers for these very expensive apartments are affluent diaspora Jews. Demand for real estate - expensive real estate - from these buyers is driving prices up all the time. In the past it was Jews from the United State and Britain; then came the French Jews, and after that the Jews from the former Soviet Union. For many of them, these prices are no problem.
Prices on Rehov Hayarkon are indeed high, or at least in that part of the street which stretches from Allenby to the Yarkon River. In the not so distant past, the part of Rehov Hayarkon that stretched from Allenby to the Dan Hotel was an area of very bad repute, prostitution, drugs and crime. But that's not the case today; Rehov Hayarkon is the abode of embassies, plush hotels and plush apartments - and they cost a fortune.
Rehov Hayarkon has apartment buildings that were built in the 1930s, '40s and '50s, as well as more modern ones. An apartment with a sea view in a dilapidated building will cost at least $7,000 per square meter. A new apartment costs anywhere from $12,000 to $15,000 per square meter. Prices for penthouses are double that.
Recently a 200-sq.-m. penthouse with a large terrace and roof garden sold for $11 million. An extensively and beautifully refurbished 90-sq.-m. apartment with an unimpeded sea view was sold for €1.05m. ($1.62m.) at today's rate of exchange; that adds up to $18,000 per square meter.
Which brings us back to 96 HAYARKON and that $40,000 per square meter. Oved Zangi, the very experienced sales manager of the project, told The Jerusalem Post: "The prices may appear high to you, but in my opinion they are not, if you consider the uniqueness of our project and its potential buyers.
"First, let me explain that we have 24 apartments and the price tag for the other apartments is much lower. Furthermore, the apartments are priced in shekels and we are asking NIS 25 million for each of the penthouses. The unrealistic rate of exchange, with the shekel strong and dollar weak, drives up the dollar price. I have reason to believe that the dollar will strengthen against the shekel and then the dollar price of our apartments will decrease accordingly.
"The high asking price is based on the fact that it is a unique project in a unique location, and that it has substantial investment value. It is a restored Bauhaus-style apartment building; originally a ground floor and four upper stories. The present building is made up of the restored section and a modern, four-story building that blends with the old. The location is unique because it has a sea view.
"It also has a very high investment value because apartments with sea views are in short supply and great demand especially from overseas buyers."
This is true for Rehov Hayarkon and for the Herbert Samuel esplanade. Apartments with sea views in Tel Aviv are a rapidly diminishing commodity and demand is constantly rising. As a result, prices will most likely keep going up.
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