AMSTERDAM (Thomson Financial) - Kardan NV said it is to merge its Israeli real estate unit, Kardan Real Estate, with Delek Real Estate, creating one of the largest residential property developers in Israel.
The merged company will hold a land bank for approximately 7,000 housing units of which 1,600 are already under construction, the company said.
Friday, March 28, 2008
Tuesday, March 25, 2008
The slump in the dollar has not yet affected foreign investment in Israeli real estate
The slump in the dollar has not yet affected foreign investment in Israeli real estate. Diaspora Jews, especially from the US, UK, and France are continuing to buy apartments either as residences or for investment.
The Bank of Israel reports that foreign residents bought $93 million worth of real estate in February 2008, compared with $167 million in January. The central bank notes the monthly drop in investment, but also notes the lower number of business days in February.
The Bank of Israel reports that foreign residents bought $93 million worth of real estate in February 2008, compared with $167 million in January. The central bank notes the monthly drop in investment, but also notes the lower number of business days in February.
Friday, March 21, 2008
Properties in central Jerusalem neighborhoods - Talbieh, the German Colony and Rehavia - have nearly doubled in price in the last four years
Property deals in the second half of 2007 were closing at levels similar to the first half of 2007, as israel real estate price increases began slowing. The flow of overseas buyers has slowed greatly in recent months.
The primary explanation for this slowdown is the economic crisis in the U.S. and the collapse of the dollar. Nevertheless, there is a feeling among prospective apartment buyers that Jerusalem property owners are asking too much for exclusive homes.
"There certainly is a slowdown," one agent says. "There is a feeling that while foreign residents behaved naively in the past and bought just about anything for any price, they are now wiser."
The primary explanation for this slowdown is the economic crisis in the U.S. and the collapse of the dollar. Nevertheless, there is a feeling among prospective apartment buyers that Jerusalem property owners are asking too much for exclusive homes.
"There certainly is a slowdown," one agent says. "There is a feeling that while foreign residents behaved naively in the past and bought just about anything for any price, they are now wiser."
Tuesday, March 18, 2008
U.S. economy in crisis as it pays price for greed
And that is how even the most solid companies, Bank Hapoalim and Bank Leumi fell sharply Monday, along with Africa Israel and The Israel Corporation. And Teva and Israel Chemicals. That is the definition of a crash - everything falls without any distinction between good and bad, including government bonds.
Real estate prices are dropping, and oil and commodity prices are skyrocketing. Exporters to the U.S. are hurting from the weak dollar, and a credit crisis is now choking economic activity. The Israeli economy is no longer expected to grow by 5% this year, but only by 3.5%. So maybe this is not really a panic, but just an intelligent and accurate appraisal of reality.
Real estate prices are dropping, and oil and commodity prices are skyrocketing. Exporters to the U.S. are hurting from the weak dollar, and a credit crisis is now choking economic activity. The Israeli economy is no longer expected to grow by 5% this year, but only by 3.5%. So maybe this is not really a panic, but just an intelligent and accurate appraisal of reality.
Saturday, March 15, 2008
Israel real estate stocks hit 2 year low as credit crisis reaches Tel Aviv
The crisis has not ignored Tel Aviv. After chasing real estate stocks blindly in expectation that the party would never end, investors are now scared.
The fall of developer Heftsiba last August, and the financial chaos in its wake, had its effect. True, in the real estate sector they never stopped trying to convince us that Heftsiba was a one-off, specific problem - mostly criminal and not economic. But it certainly should have set off a warning light.
The Israel Real Estate 15 is now 46% below its record high of last May. Many of the index's firms are now trading at a value below its shareholder equity.
The fall of developer Heftsiba last August, and the financial chaos in its wake, had its effect. True, in the real estate sector they never stopped trying to convince us that Heftsiba was a one-off, specific problem - mostly criminal and not economic. But it certainly should have set off a warning light.
The Israel Real Estate 15 is now 46% below its record high of last May. Many of the index's firms are now trading at a value below its shareholder equity.
Wednesday, March 12, 2008
US-Israeli developer brings golf to Israel's historic Mount Arbel
It was when the bottom fell out of the US real estate market in the early 1990s, that Joseph Bernstein first got the idea to open a luxury golf course in Israel.
It wasn't an overnight revelation, more of a gradual process of discovery. Bernstein, an Israeli who had immigrated to America as a child, had been involved in a number of large real estate developments in New York through his company, Americas Partners, including the $500 million development Americas Tower, the US headquarters of Bank Hapoalim and world headquarters of PriceWaterhouseCoopers.
When the market tanked in 1991, he decided to forget about work for a while and take up golf. He spent the next year devoting himself to the sport. He traveled widely in pursuit of his new interest and one day found himself teeing off on Israel's only golf course at Caesarea.
It wasn't an overnight revelation, more of a gradual process of discovery. Bernstein, an Israeli who had immigrated to America as a child, had been involved in a number of large real estate developments in New York through his company, Americas Partners, including the $500 million development Americas Tower, the US headquarters of Bank Hapoalim and world headquarters of PriceWaterhouseCoopers.
When the market tanked in 1991, he decided to forget about work for a while and take up golf. He spent the next year devoting himself to the sport. He traveled widely in pursuit of his new interest and one day found himself teeing off on Israel's only golf course at Caesarea.
Monday, March 10, 2008
Dankner cousins leave Atlas Management
Elran (DD) Israel Real Estate Ltd. controlled by cousins co-chairmen Gad Dankner and Dori Dankner, has sold its 37.5 percent in Atlas Management Company Ltd. the property manager of Atlas Estates Ltd. (AIM:ATLS) to Elran's partners, RP Capital Group Ltd. and BCRE Izaki Properties, for â?¬6.5 million. Following the sale, RP will own 51 percent of Atlas Management Company, and Izaki Properties will own 49 percent.
Elran Real Estate owns 9 percent of Atlas Estates, which is registered in the Channel Island of Guernsey. This holding is not affected by the present deal.
Gadi Dankner and Dori Dankner will resign as directors of Atlas Management Company and from the investment committee of Atlas Estates.
Elran Real Estate owns 9 percent of Atlas Estates, which is registered in the Channel Island of Guernsey. This holding is not affected by the present deal.
Gadi Dankner and Dori Dankner will resign as directors of Atlas Management Company and from the investment committee of Atlas Estates.
Saturday, March 08, 2008
Israel real estate price boom may be over
The israel real estate market entered 2008 with a certain amount of trepidation.
Potential home buyers are apprehensive, fearing that real estate prices will continue to rise as they did in 2006 to 2007. And those who invested in real estate, in what for them were halcyon years, fear that prices may fall in the future.
But before explaining what can be expected from the local real estate market in 2008 a few words on the past. From 1996 to 2004 or 2005 Israel experienced the longest, and in some ways sharpest, real estate depression in its history. Prices fell by 20 percent to 25% on average, while some categories, particularly expensive real estate, fell by up to 40%. This was something new in Israel.
Potential home buyers are apprehensive, fearing that real estate prices will continue to rise as they did in 2006 to 2007. And those who invested in real estate, in what for them were halcyon years, fear that prices may fall in the future.
But before explaining what can be expected from the local real estate market in 2008 a few words on the past. From 1996 to 2004 or 2005 Israel experienced the longest, and in some ways sharpest, real estate depression in its history. Prices fell by 20 percent to 25% on average, while some categories, particularly expensive real estate, fell by up to 40%. This was something new in Israel.
Wednesday, March 05, 2008
Jerusalem Real Estate
Welcome, prospective home buyers, to the Jerusalem suburb of Har Homa, where the clamour of construction is difficult to square either with the tide of world opinion, which insists that new building here should be halted, or with the outraged claims by some right-wing Israeli politicians that it already has been.
"There has never before been a situation like this in the history of Jerusalem where an Israeli government actively freezes building," opposition politician Uri Ariel stormed in The Jerusalem Post last month. He calls the situation "a national disgrace."
"There has never before been a situation like this in the history of Jerusalem where an Israeli government actively freezes building," opposition politician Uri Ariel stormed in The Jerusalem Post last month. He calls the situation "a national disgrace."
Monday, March 03, 2008
Donald Trump said he might do a deal with Tshuva
"I have a lot of respect for Yitzhak Tshuva. He has done something incredible with the Plaza," real estate magnate Donald Trump told the summit yesterday afternoon. Trump owned the the Plaza at one time, but said he still has feelings for the place.
As for Israel, Trump said he loved the country and had visited a few times. He said there was even a park named after him - after he donated money for it. As for whether he intends to invest in Israel, Trump responded to the question saying he was about to build a building here, but the site was sold first. He said he might do a deal with Tshuva, and there were also interesting places to build in the Far East and Russia. But Israel is now a hot location, said Trump, adding he never would have said that 4 or 5 years ago.
As for Israel, Trump said he loved the country and had visited a few times. He said there was even a park named after him - after he donated money for it. As for whether he intends to invest in Israel, Trump responded to the question saying he was about to build a building here, but the site was sold first. He said he might do a deal with Tshuva, and there were also interesting places to build in the Far East and Russia. But Israel is now a hot location, said Trump, adding he never would have said that 4 or 5 years ago.
Saturday, March 01, 2008
U.S. Haredim investing heavily in Tel Aviv real estate
Tel Aviv Real estate may turn into a bigger market than New York for ultra-Orthodox businessmen seeking capital. This week Tel Aviv investors learned of another bond offering here, of up to NIS 200 million, by Abraham Leser, owner of a real estate group.
His associates are quick to distance him from another ultra-Orthodox real estate tycoon: Shaya Boymelgreen. "He isn't like him at all, not colorful and not embroiled [in disputes] like him. He has no ego," said one of his friends.
His associates are quick to distance him from another ultra-Orthodox real estate tycoon: Shaya Boymelgreen. "He isn't like him at all, not colorful and not embroiled [in disputes] like him. He has no ego," said one of his friends.
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