New Urban Renewal Projects in Bat Yam
Urban renewal in Bat Yam is becoming more prevalent, with developers taking advantage of the benefits of revamping existing properties. The highest-profile project in Bat Yam is the Yoseftal project, which will include three towers with a total of 576 apartments near the Bat Yam Mall. The project, which has been in development for the past three years, is expected to be completed in another 3 years and will have a second phase.
Although the project has seen a relatively high number of sales, the developer, Matzlavai, is facing challenges due to increasing costs. Initial projections estimated a gross profit of NIS 153 million, but recent financial statements have revealed that costs have increased by approximately NIS 86 million. Additionally, the developer has seen a decline in sales, likely due to the rising prices of apartments as the project advances.
Bat Yam’s urban renewal projects have also had a positive impact on existing property owners. Prices in the area have not fallen at the same rate as the national average, with some properties seeing significant returns for sellers. Two apartments on a particular street in the area were sold for NIS 2.3 million and NIS 2.4 million, producing returns of 130% and 86% for the respective buyers.
While urban renewal presents opportunities for developers and property owners, it is clear that challenges exist, particularly as costs rise and profits decline in certain areas. As Bat Yam continues to see growth and development, it is essential for all stakeholders to navigate these changes appropriately to ensure the success of these projects.
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