Israeli Real Estate Developers Partner With Consumer Clubs For Sales Boost

In a challenging real estate market, Israeli developers are increasingly collaborating with consumer clubs to drive sales. A recent example saw 72 apartments sold in less than a week at the LEV project in Rehovot by Bunei HaTichon, generating approximately 183 million shekels. This success is attributed to a partnership with "Mami," a consumer club founded by Maayan Adam, which boasts around 400,000 female members.

This trend of real estate companies partnering with consumer clubs is not new, but it has gained momentum as developers seek more certainty in early sales stages. Instead of broad advertising campaigns with uncertain returns, companies can connect with a concentrated audience through these clubs. The clubs receive commissions for deals made by their members, while members benefit from exclusive discounts and terms not typically available to individual buyers. "Friend" (Chaver), a long-standing club, is noted for its extensive experience in negotiating favorable terms for its members, including significant discounts and favorable payment conditions.

One notable "Friend" collaboration involved Aura, offering nearly 800 apartments across five projects with double-digit discounts, 85/15 financing terms, and waived indexation differences. This promotion resulted in 284 purchase requests in a single month and 720 deals reported by Aura in the first half of the year. Similarly, Av-Gad partnered with the HOT consumer club, offering discounts of up to 500,000 shekels on apartments in various locations.

Experts emphasize that while these partnerships offer benefits like bulk purchasing power and targeted marketing, buyers must still conduct their own due diligence. The perceived discounts need careful examination to ensure they represent genuine value. Legal professionals advise verifying that all promised benefits are explicitly stated in the purchase agreement and that the overall deal remains financially sound after considering club fees and other costs. Clubs like "Mami," "HitechZone," and "HOME" vet projects rigorously, aiming to provide members with verified, advantageous deals and a sense of security in major purchasing decisions.