Skip to comments.Tel Aviv Rental Apartments Become Real Estate Gold
Posted on 08/23/2008 7:03:25 AM PDT by IsraelBeach
Tel Aviv Rental Apartments Become Real Estate Gold
By Carole Fradette
Israel News Agency
Jerusalem, Israel --- August 22 With the peace process moving forward in the Middle East, a drop in terror attacks and a record breaking season for tourists visiting Israel, rental apartments in Tel Aviv have quickly turned into a much prized asset.
Hard evidence that the Tel Aviv apartment rental and sales sector is rapidly expanding is illustrated by the Tel Aviv Stock Exchange (TASE) which has also risen recently, and of all sectors real estate has taken the largest and most consistent jump.
Investors both in Israel and abroad run first for the real estate sector morning sessions begin and end with Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) and Kardan NV (TASE: KRNV;AEX:KARD) becoming the two main beneficiaries. Africa-Israel climbed 4.5 percent while Kardan rose 5.3 percent.
Ocif Investment and Development, the Tel Aviv real estate and apartment property controlled by Israel businessman and billionaire Arkady Gaydamak, continues to climb. Migdal Insurance Holdings Ltd., Israel's biggest life insurer, is in talks to buy Tel Aviv rental apartments and real estate from Gaydamak for NIS 1.5 billion.
But the search for real estate in Israel, especially in both Tel Aviv and Jerusalem apartment rental and sales has become a very small market for Tel Aviv real estate developers seeking domestic clients. In the past ten years most of Tel Aviv and Israel's large real estate development companies have been marketing themselves in New York, Chicago, Los Angeles, Miami, Beverly Hills, Great Neck, London, Paris, Toronto, South Africa, Australia and in other foreign markets. And there appears today to be a lack of quality rental apartments in Tel Aviv and Jerusalem as rental prices keep climbing in both markets. Hafia and the south of Israel have been experiencing just the opposite effect, with apartment rental and sales taking a dive.
"Two or three years ago, it was truly difficult to market quality holiday rental apartment in Tel Aviv," says Avi Slama, developer of the Tel Aviv Rental Apartments. "Today, my office receives dozens of emails per day and our phones don't stop ringing with requests for reservations. The Tel Aviv rental apartments that I am responsible for are just a two minute walk from the beach and next to the famous Tel Aviv Port - Namal, but even those rental apartments which are further away from the beach, are being grabbed by those in Washington, Montreal, Stockholm, Philadelphia, Madrid, Rome and Moscow. The tourists are here in record numbers and one can't even find a car to rent."
Slama adds: "The dramatic rise in tourism to Tel Aviv, has spelled an increase in jobs for those working in and for hotels, the Tel Aviv car rental industry, Tel Aviv restaurants, tour guides, taxi drivers and much needed tax money for the local Tel Aviv and national governments. But it is the tourists who come here on holiday, and the business people seeking quality, elegant rental apartments in Tel Aviv who gain the most."
Slama, who now operates a few dozen rental apartments in Tel Aviv and is now preparing to purchase hundreds more says: "Taglit - Birthright Israel trips, which provide free educational, first-time trips to Israel for Jewish young adults ages 18 to 26, Nefesh B'Nefesh and the Jewish Agency, the Israel Ministry of Foreign Affairs and Tourism have performed a powerful and effective job in transmitting the real images of Israel - not that of a terror struck country, but rather the reality of a fun, beach lined historical, cultural and peaceful place to visit and invest in. And thousands from New York, Paris, Russia, London to Japan and Hong Kong are now investing in Tel Aviv rental apartments for short, long term and for sales."
Investor and VC capital has been coming in from the US, Canada and Western Europe, but according to the Israel Export Institute, Israel is now preparing for future investment stemming from India, China, Japan and other nations in the Far East. East-Central Europe has also become a hot spot for investment in Tel Aviv rental apartments.
Just after a one hour drive around Tel Aviv, one can see that Israel companies have been involved in massive projects, building residential projects, industrial parks, commercial centers and shopping centers. Captial for investing in these Tel Aviv rental apartments and projects has come from the London Stock Exchange and other European stock markets.
One example of successful European investment is that of Europort, an Israel real estate firm which has been very active in Central and Eastern Europe. EuroPort specializes in developing business parks. Europort was the creator of the very successful Airport City business industrial park near Tel Aviv Ben Gurion International Airport.
"Of all of the Internet Web 2.0 community groups and rooms that I have created and share information with from Facebook, MySpace, Craigslist to Yahoo, Google groups and Knol, Israel Anglo Homes has become the most active," says Internet pioneer and Tel Aviv SEO marketing professional Joel Leyden.
"Israel Anglo Homes, which is a free classified directory for real estate agents, buyers and sellers in Tel Aviv, Jerusalem, Ashdod, Herzliya, Modein, Ra'anana, Kfar Sava, Ramat Aviv, Netanya and Haifa apartment rentals and sales, has now overshadowed other popular forums dedicated to singles dating, consumer issues, business networking, Olympics and local sports, and politics in Israel. I bet if I was to open an Internet Web 2.0 community forum room dedicated to the Beijing China Olympics, Amanda Beard, Michael Phelps, Usain Bolt, Britney Spears, Madonna, video games, finance, maps, travel, music, shopping, Barack Obama, George Bush, cyber warfare, nuclear war, the Mossad or erotic services in Tel Aviv, interest in Tel Aviv rental apartments and real estate would still come up number one."
"There is no greater path to peace than commercial investment. The Tel Aviv rental apartments for which I operate are now being booked for next year. And with each and every tourist and business person who stays at our holiday apartments in Tel Aviv goes back to their countries and friends with excellent PR for both Tel Aviv and Israel. The positive impressions that they leave with not only contribute to Tel Aviv, Jerusalem and Israel, but for the entire Middle-East."
More proof that walls work.
That's the best funny I've heard all day. Sell while there's a temporary lull in the bombing because the tourists' dollars may not be there this time next year or even next month.
Make that "secured" walls work.
Plenty of hotels and rental apartments in Tel Aviv.
Visit our beaches, restaurants, nightclubs, historical sites - support our Israel's economy!
Tel Aviv Beach
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