Is It Worthwhile to Purchase a Luxury Unit?
Clients often ask us what our thoughts are on purchasing units in luxury projects such as HaMesila, King David's Crown, or the like; isn’t it very expensive per square meter? Are we overpaying for some fancy finishes? Why is this an attractive purchase?
A Myriad of Benefits
In our opinion, there are a myriad of benefits to purchasing luxury units in Jerusalem, especially in the current market.
Aside from the obvious benefits of living in a modern, beautiful building which is constantly being maintained and offers amenities such as security, elevators, private parking, sukkah balconies, storage units, owning a unit in these projects is a very good investment, both short and long term.
If you are planning on purchasing this unit as a vacation home, renting it out short-term while you are not using it is likely to generate a great income, as units like these are very highly requested, especially during peak seasons and holidays.
A Wonderful Investment
If you plan on living in the unit year-round, the value of the unit should only increase with time, making it a wonderful investment, should you decide to sell it one day.
When these projects are completely sold out there is very likely to be high demand with extremely low supply.
Moreover, purchasing in a luxury project at the early stages of development means you will have the ability to customize the unit to your liking. You will be able to choose from a selection of designs, colors, and materials, and sometimes can even have the opportunity to customize floor plans, to get the most out of your unit and truly make it your own.
This is a rare opportunity when purchasing a home in Jerusalem! Well done to those savvy buyers who bought early!
Luxury Projects Generate a Buzz
Luxury projects generate a buzz. They generally offer all of the fantastic amenities that most people are looking for these days, and are located in highly requested neighborhoods like the German Colony, Baka, and Talbiya. The more units that sell in the project, the more highly requested it becomes.
For example, Park Eight has basically sold out, and HaMesila has very few units still available with 18 months of construction left!
As these units continue to sell, the prices increase because it is clear to the developers that there is a pool of buyers who will pay top dollar (or shekel) for these units.
Furthermore, when the project has completely sold out and there are no apartments available anymore, the desire for the project skyrockets, and the value of the units could well jump 20-25% in the next 18 months.
A New Wave of Buyers Eager to Claim Their Spot
As the demand for units with these amenities only increases and the supply remains very low, luxury projects in Jerusalem are seeing a new wave of buyers eager to claim their spot.
Buyers know that they are getting a great deal on the unit (especially if they enter at the early stages of development), the value of the unit should increase with time, they can customize the unit to their liking, they don’t have to worry about renovations to make a place fresh and new, and, most importantly, they get all of the amenities that they could ever want.