French-Israeli businessman buys eight Jerusalem apartments in one deal

A French-Israeli businessman has bought eight apartments in the RAYK Borochov project in Jerusalem’s Kiryat Yovel neighborhood for 24 million shekels. The average price comes to about 3 million shekels per apartment, or 34,000 shekels per square meter, and all of the units are intended as investments.

The package includes four three-room apartments of about 74 square meters each, with 9-square-meter balconies, parking and storage, at an average price of 2.75 million shekels apiece, and four four-room apartments of about 96 square meters each, with 12-square-meter balconies, parking and storage, at an average price of 3.33 million shekels each. The apartments are on floors 2 through 12 of the tower planned for the site.

The project, at 49-53 Borochov Street, is being developed by RAYK Real Estate, part of Asaf Group. It will replace four existing apartment blocks with two buildings of 9 and 27 stories, totaling about 190 housing units, plus retail space and an underground parking garage. The unit mix will range from two to six rooms, with shared resident facilities. The current deal is part of a broader campaign, and the company says it has sold about 25 apartments in the past two months.

According to the developer, the transactions were signed at about 3.5% below the marketing price. The buyer also received customary incentives, including a 10,000-shekel credit per apartment for upgrades, exemption from index-linked price increases, and waiver of legal fees. Nearby market checks put new apartments in the area at 36,700 shekels per square meter on average, with three-room units around 2.97 million shekels and four-room units around 3.8 million shekels, meaning this deal was 7% to 8% below local averages.

The company says local three-room rentals are around 7,000 shekels a month and four-room rentals around 8,500 shekels, implying a potential annual yield of about 3% once the project is occupied in roughly three years. Developer Yossi Ryk said the deal reflects a wider influx of private capital into Jerusalem housing, driven by the city’s resilience and upside potential. Appraiser Kobi Bir said the discounts and incentives are common, noting that 34,000 shekels per square meter is at the lower end for nearby renewal projects and calling the price “reasonable, but on the low side.”