Is the plight of the contractors and entrepreneurs translated into the field? According to information obtained by Globes, the Chen Vaiti Gindi company, which is building the Lea Park project in the Herzliya Green neighborhood in Herzliya, is currently offering new five-room apartments in the project at a significantly lower price than the price it offered just a short time ago. The discount translates to about NIS 350,000 compared to the offers from last December, and to about NIS 600,000 when compared to the transactions already carried out in the project in August.
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In the notices the company sent to those interested in the project about a month ago, it offered five-room apartments in the project “starting at NIS 5,390,000”. According to the project website, the company has several types of five-room apartments, in the two buildings it is constructing in the complex, from type A to type D, 124 square meters to 140 square meters, alongside garden apartments and penthouses, 5-6 rooms.
In recent days, the company sent a new offer to those interested: “a five-room apartment, 137 square meters, starting at NIS 5,080,000”, which means a discount of about NIS 310,000 on similar apartments. A Globes check on the Madeleine website shows that five-room apartments were sold last August in an area of 137 square meters in the project for NIS 5,660,000, which means almost NIS 600 thousand more than the price currently offered by the company, and in percentages – a difference of about 10%.
The Lia Park project includes two buildings of 12 floors each, and both together have 87 housing units. The project was built on Dalia Rabikowitz Street in the Herzliya Green neighborhood, a short distance from Reichman University (the Interdisciplinary Center) and Herzliya Park. The buildings are being built as the general contractor by the Ram Adrat company, which is also a partner in the project.
We will remind you that in recent times the residential real estate market has signaled an increasing slowdown in its activity, both in the purchase of new apartments and in transactions in general. This discount offered by the Chen Vaiti Gindi company is not the first that entrepreneurs and contractors have announced these days: recently, the Ha’ad Hobonim group announced a “sale Exclusive” to members of the Hot consumer club, which allows discounts of up to NIS 400,000 on the purchase of an apartment in the Magdali Yadav project in Ashdod.
Such moves are perhaps the first signal of a certain distress that the contractors and developers are now facing, which is also derived from the increase in interest rates in the economy by the Bank of Israel in recent months, and which burdens the real estate companies and the contractors with increasingly burdensome financing expenses.
No response was given from Chen Vaiti Gindi.