Tel Aviv Developers Slash Prices Amid Sales Slump, Offering Apartments for One Million Shekels

Facing a significant slowdown in apartment sales, several major Israeli developers are introducing aggressive pricing and unique sales models to attract buyers in Tel Aviv and surrounding areas. The Hajaj Group recently launched a novel offer for its Infinity Tower project in Tel Aviv, allowing buyers to purchase luxury apartments for one million shekels without a mortgage. Buyers pay one million shekels upon contract signing and can move in immediately, with the remaining balance payable over three years without interest or linkage. The company guarantees double-digit rental yields for the first two years, exemplified by a two-room, 70-square-meter apartment promising a monthly rent of at least 10,000 shekels, equating to a 24% return on the initial payment.

This offer applies to over 30 apartments in the Infinity Tower, part of a larger 278-unit project with apartments ranging from two to five rooms, many previously priced at around 60,000 shekels per square meter. Hajaj Group stated that changing buyer and investor behavior motivated this new sales approach. Meanwhile, the Prashkovsky Group is closing a tender this week to sell hundreds of apartments across its construction sites nationwide, reflecting similar market pressures.

Additionally, Aura Construction is launching a special discount campaign for members of the "Haver" customer club, offering approximately 10% discounts on apartments in four projects located in Ramat Gan, Ramat Hasharon, Kiryat Ono, and Hadera. This discount exceeds the typical 7% reductions usually offered in comparable situations, underscoring the developers' urgency to stimulate sales amid the current market slowdown.