Have you noticed a pattern every year before Passover? Torrential rain followed by a heat wave following, a sand cloud from Egypt just before spring cleaning, swarms of locusts come from the pyramids, and French people arriving in droves to Israel. A few years ago, Jews of the diaspora, mostly from France and the U.S. discovered Israeli real estate. The collapse of the global economy and the depreciation of assets overseas, and in the case of France, the wave of anti-Semitism that began to plague France, led them to buy homes in Israel. French Jews have traditionally done well financially and own many successful businesses, most notably jewelry businesses, restaurants, and coffee shops.
At first, French buyers would buy beach-front apartments in cities such as Tel Aviv, Netanya, and Ashdod, venturing as far south as Eilat, buying themselves a refuge for desperate times should they need to flee France for the safety of Israel. Easing the difficulties of assimilation in a new country, the apartment would also serve as a holiday home for summer months and holidays. That is why, in recent years, we have become accustomed to hearing French in summer, as the French come to vacation and to buy apartments. In 2013 the timing, in financial terms, for French Jews to buy apartments is far from ideal for two primary reasons: one is that home prices in Israel have risen 70% since 2007 and two is that the Euro and dollar are significantly weaker against the Shekel compared to previous years. Remember July 6, 2002, just over a decade ago, during the term of Bank of Israel Governor Klein, the dollar peaked at 4.99 Shekels per Dollar. Now remember June 8, 2007 when the Euro conquered the Everest and reached more than 5.93 Shekels per Euro.
What I am trying to say is that in the past foreign investors were able to get more Shekel for their money. Today, the situation is very different. The value of their home currency has declined significantly. This, coupled with the steep appreciation in apartment prices, has kept diaspora Jews away from the Israeli real estate market.
For example, if a person wanted to buy real estate in Israel in 2007 with half a million Euros, he would receive 2,965,000 Shekels (at 5.93 NIS/EUR) and could afford to buy a spacious 7 bedroom single-family home with a garden in Neve Oz Hahadasha in Petah Tikva. Today, that same person would get 2,400,000 (at 4.80 NIS/EUR) and could only afford to buy a 5 bedroom apartment in Kfar Ganim Gimel with a storage shed and 40 neighbors.
While the original Exodus lasted 40 years. Today the French can reach Israel in five hours by plane. They are on their way. We will hear and see them and perhaps even watch them tanning on the beaches of Tel Aviv. Less certain, will be their appetite for real estate as in previous years.
Our brokerage firm is in contact on a regular basis with communities of both English and French citizens living abroad and we provide them consultation for buying and selling an apartments in Israel. If you are looking for a luxury real estate agency in Israel for foreign residents and returning residents, we have a special department of English and French speakers. Usually wealthy Jews who wish to make an aliyah and buy a villa in Israel or to buy another house in Israel, during their visit to Israel, these customers contact our office. Our professional service is known for Jews in France and Belgium, England, the United States, and other countries in Europe and America who wish to purchase a home in Israel for permanent residence or residential accommodation. We are the biggest office of Luxury Real Estate in Israel - Yokra Estate.
Our luxury properties for sale Israel are in the Dan region and in the Tel Aviv area, south of the country, northern Israel, the Shefela area, Jerusalem, contact us and we will help you. Real Estate Consultants for Overseas Investors, Real Estate in Israel.
Written by Mimran Yossi, CEO of Yokra Estate, specialists in marketing and brokerage of luxury houses in Israel, mainly in Savyon, Tel Aviv, Arsuf, Kfar Shmaryahu, Herzliya Pituach, Petach Tikva, Raanana, Hod Hasharon, Kfar Saba. Call 054-5455955
