This month, Bibian Group Israel Real Estate Founder and CEO David Bibian discusses the factors driving the super-hot market.
Bibian Group Israel Real Estate
Tel Aviv, Israel
David Bibian, Founder and CEO
https://bibiangroup.com
Tell us about yourself and your firm.
I was born and raised in Israel and, after serving in the Israel Defense Forces, attended Yeshiva University in New York. I worked in finance before pursuing a career as a New York City real estate broker, where I developed a niche helping clients navigate the Israeli real estate market from a global viewpoint with a local understanding of the market. As the inquiries picked up, I opened Bibian Group Israel Real Estate, specializing in helping foreign clients. We handle sales, rentals and property management throughout Israel, including the Tel Aviv metropolitan area, the Jerusalem area, north of Tel Aviv toward Haifa and the south. Our team includes brokers, real estate lawyers, financiers and accountants ready to take on any task.
How would you describe your current housing market?
While prices have been rising since 2008, the average home price in Israel stands at 1,880,000 Shekels ($575,000 USD). In Tel Aviv, the average price is much higher at 3,645,000 Shekels ($1,110,000 USD). Israel is a unique place, as it is the only Jewish state worldwide. Moreover, industries such as tech, pharma-medical, agriculture, real estate and finance are very strong, contributing to the robust economy. With the global crisis in 2008 and the pandemic in 2020, local Israelis can afford better and larger homes, and demand is on the rise. Foreign buyers also contribute to the market, looking for great investments. The mix of local and foreign buyers has made our market super-hot for the past couple of years, and we believe that trend will continue.
What is the state of inventory?
Demand is higher than supply for both rental properties and homes for sale. With the average birth-per-family the highest among OECD (Organization for Economic Co-operation and Development) countries, demand will only continue to grow. To meet this demand, the government encourages builders and investment companies to build and develop. If you visit Israel at any given time, you will see cranes and construction sites all over the country.
What types of properties are most popular in your market?
Most of our inventory is comprised of condominiums, and among them, you can find penthouses, duplex apartments and luxury apartments overlooking the Mediterranean Sea. We also sell villas, single-family homes and commercial properties such as land for development, buildings, offices and retail space.
What are some of the most important trends in your market?
The younger generation in Israel is moving into their own apartments instead of continuing to live with their parents. There is also increasing foreign investment from North America for second homes and investment properties. In addition, locals and foreigners are looking for more luxurious properties with higher standards of living, such as penthouse apartments with swimming pools, panoramic views, and buildings with fitness centers and doormen.
Tell us more about foreign investment trends.
Because the market in Israel is friendly to foreign buyers, we see a lot of activity. We see two major types of foreign investors: individuals who buy property to enhance their portfolios and/or for family use, and large-scale investment companies interested in cash flow, profits, yields and asset appreciation. Up until seven years ago, the majority of foreign investors were from France, South Africa, Russia and the UK. In recent years, we have seen more investors from the U.S. and Canada.
What advice do you have for foreign buyers interested in buying in your area?
Consult with a real estate professional before making a decision. We have received many inquiries from clients who purchased without verifying ownership, zoning and future plans. Part of our due diligence when working with development clients, both locally and globally, is checking the zoning and permit requirements.
What are your biggest opportunities for growth?
One of our biggest opportunities is working with developers and investment companies, some based overseas, to develop mixed-use multi-family developments near the future metro and subway lines that are being built in Israel. The first line will be open around November, and the market will go even higher near the metro stations that are all over Gush Dan, Tel Aviv’s metropolitan area.
What do you love most about living in your area?
Israelis are very friendly and welcoming. Most people speak conversational English, which makes it easy for foreigners. You can feel the authenticity of the Holy Land across the country, with a wonderful combination of a rich history and the modern world. Public amenities such as beach access with clear and warm Mediterranean water, along with events and festivals almost every day, make Israel a lively and vibrant place. Israel is environmentally friendly, and you can bike, scooter and use public transportation easily.
How does being part of Leading Real Estate Companies of the World® help advance your business?
Thanks to our reputation, The Bibian Group is the first Israeli company invited to be part of the industry’s largest broker-to-broker network. LeadingRE is one big global family with quality-focused professional partners in over 550 firms worldwide. Our relationship gives us the exposure our clients need and the ability to collaborate with major markets worldwide. Educational sessions, economic and marketing workshops, and great support give us the tools we need to perform at the highest level. When we travel, we look to see who the local LeadingRE brokerage is and stop by to say hello. We are a strong and unique community, giving our clients endless opportunities to market their properties.
For more information, visit https://www.leadingre.com.
