The British Embassy recently sold a one-dunam (quarter-acre) plot on Kaplan Street in Herzliya Pituah for $2.1 million. Two cottages could be built on the property.
Local real estate agents said the price was 30 percent higher than estimates, and showed the continuing surge in deals in Israel's most prestigious neighborhood.
The embassy published a tender for the property. The winning bid was $2.1 million, even though local real estate professionals expected a price of only $1.6 million.
The deal was only one of many recently, with the larger properties increasing the least in value. The most sought-after properties are empty lots, while mid-size houses fare better than large ones.
The Herzliya Pituah market is considered atypical, as it is strongly influenced by foreigners, particularly diplomats and embassies. On the other hand, due to the increased prices and rising demand, some sellers in Herzliya often have unreasonable demands or expectations, and may be disappointed when they finally sell at lower prices than they were holding out for.