Aura Shares Surge as CEO Calls Now Best Time to Buy Apartments Amid Market Challenges
Aura, an Israeli real estate company led by CEO Yaakov Atrachchi, reported a 36.9% revenue increase to approximately 560 million shekels in Q2 2024, driven mainly by apartment sales totaling around 413 million shekels. Despite this growth, the company’s gross profit margin declined to 21.8% from 26.2% the previous year, and net profit attributable to shareholders dropped 23.8% to 48.4 million shekels. Since the start of 2024, Aura sold 436 apartments, with an additional 284 purchase requests signed this month under the "Haver" campaign, totaling 720 transactions, which the company cites as evidence of its resilience in a challenging market.
In the first half of the year, revenues reached 1.05 billion shekels, a 26.3% increase, while operating profit fell 5.2% to 226 million shekels and net profit declined 34.6% to 105 million shekels. Atrachchi described the results as excellent, emphasizing that Aura sold 720 apartments despite a market many consider weak, especially in Tel Aviv and the Gush Dan area. He attributed this to rising rental prices and a recent decline in interest rates, which he believes is making mortgage financing more attractive. "Now is the best time to buy," Atrachchi said, noting that buyers can negotiate better prices in a softer market.
The company has offered discounts of about 10%-11% to security forces, aiming to support this key demographic, and sold apartments in cities including Ofakim, Hadera, Ramat Gan, Kiryat Ono, and Ramat Hasharon. Atrachchi expects prices to start rising again next year and said investors have been less active recently but will return when the market recovers. He stressed that Aura’s transactions are genuine and not gimmicks, and that projects are progressing well without delays.
Atrachchi also addressed the decline in gross profit margins, stating they remain high relative to the market. He predicted consolidation in the urban renewal sector, with smaller firms disappearing or merging with larger ones. He warned that limited land sales by the Israel Land Authority and project delays will likely cause price increases in the near future, especially in peripheral cities. Aura is exploring new directions such as senior housing but will avoid risky ventures. Atrachchi sees long-term rental markets and REIT funds as promising but not aligned with Aura’s current focus.
