Image
Dear family, friends and colleagues, 
 
I am pleased to share with you my Israeli real estate market report for March 2021. 

Israel is the leading country with vaccinations, expecting to open up economy, almost fully, by mid March. 

Properties in Israel are in high demand, new constructions are doing great and more and more inverstors are interested to do business in Israel, especially near Tech hubs and near the future subway / metro lines. 

 look forward to receiving your feedback along with any questions, and of course, any referrals for Israel!

Thanks again everyone who helped with creating this newsletter, especially the marketing team and relocation team at Brown Harris Stevens.

Feel free to share with friends who can opt-in here to receive future newsletters.   


Yours,  

David Bibian
דוד ביביאן  
Licensed R.E. Salesperson  
david.bibian@bhsusa.com  
+1 212 381 3269
Image
Binyamina, a true hidden gem located 25 minutes from the beach town of Netanya and 45 minutes from Tel Aviv, gives a unique living experience – easy access to highways, trains, beach, nature, culture and more.

Founded in 1922 by Edmond de Rothschild, Binyamina and kept it feeling of a small town throughout the years, Binyamina is definitely a place to look forward to in case you want to purchase a primary residence, vacation home or investment property. One of Binyamina’s main feature is the notable wineries thanks to a unique geographical location on the edge of Mount Carmel.
Villa Bat Shlomo – combination of history with modern times
Located at Bat Shlomo, a Moshav (village)/neighborhood in the northern part of Binyamina’s municipal lines, this month’s new development features approved plans to create and live in a dream home on historic property with unparalleled views to vineyards, mountains and the Mediterranean sea.
Situated on 18,000 sqft plot facing Mount Carmel, the new home will be constructed on ancient ruins and caves from the Bizantine period and remaining walls from Choma U’ Migdal. The new home in this land-marked village, is the last option to live with 14 other home owners in the village what makes it very unique and quiet community.
Image
Image
Photo Credit: Tomer Ifrah
Image
Israeli start-ups eyed by world’s investors: Learn more here.
Cyber security expo in Dubai is expected to be "big" for Israeli companies:
Learn more here.
Check out this guide for all you need to know about Israel's 2021 elections: View here.
What is TAMA 38/2 (National Outline Plan 2):
In my previous newsletter I introduced TAMA 38, known as National Outline Plan #1, in depth and how the Israeli real estate market evolved through that. This month, I would like to introduce TAMA 38 #2 (National Outline Plan 2), also known as “Pinui Binui” — demolish and rebuild. TAMA 38 #2 started in 2010 to ease on developers, owners, and investors with the process of getting permits and to reconstruct a brand-new building instead of using an old structure, often wiping out entire neighborhood to build multiple luxurious high rises. In order to have a solution to housing crisis, provide better living and help the economy, the Israeli government believed that demolishing and rebuilding a brand-new building makes more sense to every party involved. The fact that as a resident or investor you have a faster process to receive a brand-new luxury development on the same pace as TAMA 38/1,is a no brainer to choose that way. 

Approved in 2010, TAMA 38/2 created a real estate boom in Israel, even during Covid19, where buildings by buildings, streets by streets, and entire neighborhoods are getting a brand-new look with high-end new developments, luxury buildings, and high-end amenities and finishes. In addition, the streets, roads, and public amenities get a face lift and upgrade as a result of TAMA 38/2 (“Pinui Binui”).
So how does it usually work ?
Upon agreement among majority of owners (80% is required by law), development team and owners work on permits, design, and urban planning in case it involves multiple buildings and public roads. Once a plan is agreed by residents and developer and approved by the local municipality, the project is starting.
What happens to owners during the construction time ?
The developer is required to sponsor a rental apartment for the duration of construction for every unit owner. This will assure that everyone will have a common interest to complete the project on time.
Which TAMA (National Outline Plan) is more popular – 1 or 2?
At the beginning, from 2007 to 2010, TAMA 38/1 was very popular. Once TAMA 38/2 has passed in 2010 and owners understood that they have an option to get a brand-new building with upgraded apartments’ layout, new amenities, parking garage, stronger structure and appreciation up to 40% of their new unit, the market has shifted toward TAMA 38/2 where it’s possible to implement, given location, size, and approvals.

On my ongoing conversations with buyers, realtors, developers, and bankers, it is pretty obvious to see that the real estate market in Israel won’t go down in the near future and with TAMA 38/1 (only 3 years left to get approvals for this way) and TAMA 38/2, the market can only go up.
Image
Image
Missing Israel? Watch this virtual walking tour of Jerusalem: Watch Now

Support an Israeli Restaurant
This month I would like to share a great place to taste a wonderful Israeli dishes. Whether you live in Los Angeles or traveling there, I highly recommend an authentic Israeli food at Tel Aviv Grill (multiple locations). You’ll enjoy an amazing food, large quantities, clean and quick service, In my opinion, they have the closest taste to Israeli food outside of Israel!
Image