The luxury residential real estate market wraps up a challenging year, heavily impacted by the war. Jerusalem claimed the two highest-priced transactions of the year—the only ones exceeding NIS 60 million—while Tel Aviv continued to dominate with most deals priced at NIS 20 million and above. Tidhar’s Rothschild 10 Tower was the site of four of the year’s eight priciest transactions.
By Dror Nir Kastel and Nimrod Bosso, Nadlan Center
Has Jerusalem’s ultra-luxury apartment market overtaken its Tel Aviv counterpart in 2024, which appears to be on a downward trend? At first glance, the top entries in the annual luxury transaction rankings suggest the answer is yes. The two most expensive residential apartment purchases this year, each exceeding NIS 60 million, were recorded in Jerusalem. In contrast to previous years, not a single transaction at this price level was recorded in Tel Aviv.
However, an analysis by the Real Estate Center of the past year’s ultra-luxury residential market, based on Israel Tax Authority data, reveals that despite these two transactions, Jerusalem’s ultra-luxury market still has a long way to go to rival Tel Aviv. Seven of Israel’s ten most expensive transactions were conducted in Tel Aviv, four in a single luxury tower. Moreover, while Tel Aviv saw 31 transactions priced at NIS 20 million and above this year, Jerusalem only recorded eight.
Outside of Tel Aviv and Jerusalem, only five transactions in this price range occurred throughout the year: two in Ra’anana, two in Kfar Shmaryahu, and one in Herzliya. It is important to note that these figures are not final. There is typically a lag of several months between the actual transaction date and its appearance in Israel Tax Authority records, so additional transactions at these price levels may still emerge.
A luxury project on the grounds of a historic villa
This year’s most expensive transaction in Israel was recorded in Jerusalem, where a penthouse in the luxury Dubnov 1 project in the Talbiyeh neighborhood sold for NIS 62.725 million. The apartment spans 437 square meters, with 408 square meters of balconies. It occupies the entire fifth floor of the five-story project.
The project was built on the site of the iconic Villa Sherover, constructed in the 1950s for industrialist Miles Sherover and his wife Gita. The 1,200-square-meter villa was located on a rare 2.4-dunam plot in this city. The project consists of two buildings with 12 apartments each and is situated on Dubnov Street, near the Jerusalem Theater, the Van Leer Institute, and the President’s Residence. The project was designed by Yoma Architects and constructed by Rosin. The transaction was finalized in May, and the project’s apartment deliveries are underway.
The project is marketed by Prosperity Real Estate, which Ronit and Tomer Duek own. Tomer Duek commented, “This is a unique project the developers have been working on for over a decade. Beyond acquiring the land, they invested significant efforts in obtaining ownership and lease rights previously held by the Greek Orthodox Church. The result is a rare and prestigious property.”
He added that many of the project’s buyers are Jewish foreign residents, some of whom have purchased more than one apartment and plan to immigrate to Israel and reside in the project. “The developers paid great attention to every project stage—from exterior planning to interior design and careful material selection. This transaction reflects the maturation of Jerusalem’s luxury real estate market, proving that the developers’ efforts created real value for customers. It also highlights the demand for unique properties in the city and the willingness of buyers to pay accordingly. I believe prices in the project will rise after occupancy.”
Four transactions surpassing NIS 40 million, all in the same tower
The most expensive transaction recorded in Tel Aviv this year, and the third most expensive overall, was purchasing a private house on Yehuda Arzi Street in the Afeka neighborhood for NIS 52.49 million. Finalized in March, the transaction covered 89% of the property, which spans 575 square meters.
The fourth most expensive transaction in Tel Aviv involved a private house on Yoav Street in the Tzahala neighborhood, sold for NIS 49 million. The deal, completed in April, involved a 676-square-meter home with ten rooms.
The fifth most expensive transaction was also in Tel Aviv, valued at NIS 47 million. This marked the first appearance of a luxury residential tower on the list. The property was a five-room apartment spanning 309 square meters on the 31st floor of Tidhar’s 42-story Rothschild 10 Tower, located near the intersection of Rothschild and Herzl streets. The deal was completed in August, and the tower is expected to be occupied in 2025.
Astonishingly, this year’s sixth, seventh, and eighth most expensive transactions were also in the Rothschild 10 Tower. The priciest among them involved a five-room apartment of 339 square meters, sold in February for NIS 45.12 million. In July, the seventh most expensive transaction, a 313-square-meter apartment on the 37th floor, sold for NIS 42.93 million. In May, a 250-square-meter apartment on the 25th floor was purchased for NIS 40.86 million.
A slowdown in the luxury market
While these transactions are undoubtedly impressive, they fall short of the highest deals from previous years, illustrating that 2024 was a year of recession in the ultra-luxury market, exacerbated by the Iron Swords War.
Last year’s highest transaction reached NIS 94.876 million, paid for the apartment of oligarch Valery Kogan in the SEA1 residential tower adjacent to the Royal Beach Hotel on Tel Aviv’s Herbert Samuel Promenade. The sold property spans approximately 616 square meters on the 20th floor of the tower.
The second-highest transaction in 2023 involved a private house, Beit Awad—a three-story heritage building on Rothschild Boulevard in Tel Aviv—sold for NIS 77.2 million. The third most expensive transaction last year took place in July in Jerusalem, with a six-story private house on HaOr Street, north of Allenby Square, sold for NIS 60.1 million.
The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.
