The Real-estate Deal: Ra’anana: Little New Construction, Prices That Don’t Change Much

Most new apartments are already sold, and prices don’t have much more room to climb.

Ra'anana

Ra’anana doesn’t seem to change much, or quickly. And even when they do build new homes, it is only a few more units added to the market. The new Neve Zemer neighborhood, in the northern part of the city, is expected to add some 3,500 housing units – but a large proportion of them, about two thirds, have already been sold as part of the combination deals between the land owners and developers, and part of the project was sold to “purchasing groups.”

The property market in Ra’anana has cooled over the last year: Real estate prices have not changed from last Passover’s level, and homes that were sold in the past within two or three months are now on the shelf for four or five months until they find a buyer.

Unlike other cities, Ra’anana has a large number of single-family homes – possibly even more than apartments. This, of course, has caused average prices to climb, but, conversely, housing prices have reached such sky-high levels that they seem to have very little room to rise any further – and prices seem to be standing still for now.

The owners of single-family homes are, generally, the more veteran residents, and they are often not necessarily looking to move up the housing market as their children are older and tend not to move for work.

There are attached houses that have been marketed for years at unrealistically high prices, until the owners decide to lower their sights to more acceptable levels. Attached homes on 250-square-meter plots and 180 to 250 meters of built-up space sell for 3.9 million shekels to 4.4 million shekels ($1.12m-$1.26m) – based mostly on location and other factors. There are luxurious homes in the Kiryat Ganim neighborhood, in the northwest part of town, which can run from 5 million to 15 million shekels, but each one is different.

The construction in Neve Zemer has still not started, but the city is already doing the infrastructure work and sales have started for the new neighborhood. Prices start at 2 million shekels for a 100-square-meter 4-room apartment.

The most expensive new neighborhood is 2005, in the southwest part of the city. A 110-square-meter 4-room apartment goes for 2.1 million to 2.2 million shekels, and a 130-square-meter 5-room apartment costs between 2.35 million and 4 million shekels.

The most expensive sale last year (in October) was 20 million shekels, for a 10-room house on a 750-square-meter plot on Nordau Street.

Eyal Toueg