Tel Aviv Developers Launch Creative Sales Model Amid Housing Market Slowdown

The slowdown in apartment sales is beginning to impact housing prices in Israel, particularly in Tel Aviv, prompting developers to adopt innovative sales strategies. Hagag Group introduced a unique offer for its Infinity Tower project in Tel Aviv, allowing buyers to pay one million shekels upfront and move into a luxury apartment without a mortgage. Buyers who choose to rent out their apartments are guaranteed a double-digit rental yield for the first two years. For example, a two-room, 70-square-meter apartment will have a guaranteed rent of at least 10,000 shekels per month, representing a 24% return on the initial payment. After the initial payment, the remaining balance can be paid over three years without interest or linkage.

The Infinity Tower, located at the corner of Ibn Gvirol and Jabotinsky streets, features a 52-story residential tower, a boutique seven-story building, and an infinity pool overlooking the sea. The project includes 278 apartments ranging from two to five rooms, with most previously sold at prices starting from 60,000 shekels per square meter. Hagag Group stated that the new model responds to changing buyer and investor preferences in managing their capital.

Other developers are also adjusting their sales approaches amid the market slowdown. The Preshkovsky Group recently launched a tender for hundreds of apartments across its construction sites nationwide, allowing buyers to bid above a minimum price. This tender, promoted by spokesperson Eli Finish, is set to close soon and has reportedly sold dozens of apartments. Additionally, Aura Construction is offering about 10% discounts to members of the Haver association on four projects in Ramat Gan, Ramat Hasharon, Kiryat Ono, and Hadera, exceeding the usual 7% discount typically offered in similar cases.