Jerusalem Apartment Sold for NIS 3.1 Million Amidst Redevelopment Plans

A 67-square-meter, three-room apartment in Jerusalem's Old Katamon neighborhood was sold for NIS 3.1 million. The first-floor unit, lacking a balcony, protected room, or parking, is located in a building slated for a "pinui-binui" (demolition and reconstruction) project involving three other buildings. The project's plan is currently under deposit, and upon completion, the apartment will be expanded by 28 square meters, gain a 12-square-meter balcony, a protected room, and parking.

The apartment was initially listed for NIS 3.3 million and was on the market for about a month. The sellers, who live in central Israel, had been renting out the property, while the buyers are investors. Shaf Avitan, head of the RE/MAX Shiraz Real Estate team that handled the sale, reported strong demand, with seven offers received within a week. Even after negotiations began, further offers, some higher, were received but ethically declined.

Avitan estimates that a similar apartment without redevelopment plans would sell for around NIS 2.6 million. He anticipates the redevelopment project will take approximately six years until demolition and another three to four years for construction. Despite the long timeline, buyers recognized the potential and paid a premium due to the project's advanced stage. He noted that while prices in Jerusalem are seeing some declines, the high volume of transactions is balancing the market.

Avitan also mentioned that an apartment he sold earlier in the year for NIS 4.8 million in a week now takes 4-5 months to sell for NIS 4.6 million. The transaction was facilitated by Avitan and his partner, Ido Ayr. The article also lists recent sales of second-hand apartments in Tel Aviv, Kiryat Bialik, Jerusalem, Petah Tikva, and Kiryat Malachi.