If Only 5 Years Ago…

If Only 5 Years Ago...

(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene. This is not financial advise, you must do your own independent research when investing in real estate.)

I remember going on trips a few years ago to Beersheva and Dimona to look at investment opportunities at around half a million shekels including mortgages.

At that point, the prices were starting to rise, so even though I saw a great return on investment, it did not seem like a great deal as the prices were already shooting up.

Now, when I look at the prices currently, and I calculate the returns if I had chosen to go through with those investments, I would have invested extremely well.

That is my “if only I purchased 5 years ago” moment.

I honestly still consider now, even with the new prices, investing into Beersheva. In another situation, I was considering buying my first home in an apartment in Ashkelon when it was 1.6 million shekel, and deciding not to go for it. Now, ten years later, those homes are approximately 6 million shekel plus.

The rise in prices has been all over Israel

This is reflected in cities all over Israel, specifically Jerusalem. Many people reading this can probably relate in terms of looking at apartments in Jerusalem 5 years ago, thinking the prices are too high and holding back on buying, and now seeing the current prices and regretting not jumping in sooner.

I really think this is a classic moment where people might think back to summer 2022 and wish they had gotten into the market.

The world circumstances might confuse your thought process here, however, instability drives the Jerusalem market, and in my opinion, it is fair to say Europe, the UK, and the USA are more unstable than Israel at the moment.

It is hard to fathom spending 1 to 1.5 million dollars and not getting these luxury 2000 SQFT apartments.

Difficult to compare US prices to Israel...

How is the market price for luxury 200 SQFT apartments in Jerusalem 3 million dollars plus when I could purchase a luxury mansion for the same price in most affluent locations in America?

It definitely makes the decision to jump into the market much harder when you feel as though you are not getting your money’s worth.

Just remember you can in no way compare the markets as the supply in Jerusalem is ridiculously low. We do not expect large drops anytime soon Based on the market trends and conditions, I do not see the prime areas of the Jerusalem market taking large drops anytime soon.

The market has leveled out in the past couple of months, making this a great time to jump into the market. Jerusalem prices will always have a hard time dropping as the demand is generally high.

Do not let yourself be in the situation in five years wishing you had bought now. You have to stop looking at what prices were and realize what they are and what likely may well become.

Contact CapitIL Real Estate Agency.

See available Jerusalem real estate here and new development projects here.