Tel Aviv Penthouse Sells for Record Price Amid Market Slowdown
Translated & summarized from Ice by baba
A penthouse in Tel Aviv's Infinity Tower sold for NIS 55.55 million, a record price for the city's luxury market. The buyer will complete the interior finishing, potentially increasing the total cost significantly. The sale price per square meter aligns with other high-end deals in Tel Aviv, despite a general market slowdown. The developer reports strong sales for the project.
The story in 5 lines · by baba
- A penthouse in Tel Aviv's Infinity Tower sold for a record NIS 55.55 million.
- The buyer will undertake interior finishing, increasing the total cost.
- The price per square meter is over NIS 150,000, consistent with other luxury sales.
- The sale occurred during a slowdown in the real estate market.
- The developer reports 80% of the project's units have been sold.
A penthouse in Tel Aviv's Infinity Tower has been sold for NIS 55.55 million, a record price that highlights the resilience of the city's luxury real estate market despite a broader slowdown. The sale, on the 51st and 52nd floors of the tower located at the intersection of Ibn Gabirol and Jabotinsky streets, involved a buyer who will undertake the interior finishing work themselves. This arrangement means the final cost to the buyer will be significantly higher than the purchase price, allowing them to complete the work at their own pace.
The transaction draws parallels to a 2012 Supreme Court ruling involving Shlomo Nechama, who bought a NIS 45 million apartment on Rothschild Boulevard. The Israel Tax Authority had argued that Nechama's extensive renovations, turning a shell apartment into a habitable residence, constituted a taxable event. However, the court ruled that the apartment met the definition of a residence, granting Nechama significant tax savings.
While the current penthouse sale is not identical to Nechama's case, it involves a high-priced apartment sold in a shell condition. This raises questions about whether developers will increasingly sell apartments in unfinished states to attract buyers willing to customize their homes. The cost of finishing a luxury apartment can easily triple the initial purchase price, suggesting the penthouse, if fully finished by the seller, might have been marketed closer to NIS 60 million.
The sale price translates to over NIS 150,000 per square meter for the 293 square meter apartment, plus 158 square meters of balconies. Such prices are not uncommon in Tel Aviv's prime locations, with similar deals reported at the Mandarine project. The tower is still under construction, giving the buyer, an overseas resident from the US, ample time for customization.
Developers, including Israel Canada and Tidhar, have recently reported strong sales at high price points per square meter, with some luxury apartments fetching between NIS 130,000 and NIS 160,000 per square meter. The sale by the Hajaj group, which claims 80% of its project is sold, is considered exceptional given the current market conditions, even though the price per square meter aligns with other high-end transactions in the city.
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