French investors recently bought two apartments in Tel Aviv’s Infinity Tower, being developed by Hagag Group (TASE: HGG), for NIS 27.5 million.
The first apartment costing NIS 16.5 million is on the 43rd floor with a sea view and is 180 square meters in size with a 22 square meter balcony. The second apartment on the ninth floor is 150 square meters in size with a 29 square meter balcony, which cost NIS 11 million.
The deals, including the balconies, on the first apartment reflects a price of NIS 86,300 per square meter, while the second apartment reflects a price of Nis 66,800 per square meter.
According to Hagag Group’s 2024 financial report, the two deals reflect higher than average prices per square meter in the project. Since the company began marketing Infinity Tower in 2021, the average per square meter in apartments sold was NIS 53,600 while in 2024 the average was NIS 58,390 per square meter. In the first quarter of 2024, the average was NIS 64,100 per square meter, while the company reported that after the date of the report date, nine apartments were sold in the project, at an average price of NIS 67,660 per square meter.
“The differences per square meter between the apartments is understandable, and stems mainly from the differences in height,” says appraiser Eyal Teddy Harel of Teddy Appraisals and Management. “The 43rd floor will enjoy a sea view, while on the ninth floor it is already not certain that you can see the sea – and in the future, when additional towers are built in the area, the view will be blocked even more.”
Both apartments were purchased by a real estate holding company owned by French investors. Adv. Yomtov Kalfon from the S. Friedman & Abramson & Co. (SFA) law firm supported the deal together with Advs. Yonatan Gal and Yoni Cohen. The real estate agents were Zach Azogui from Mykeyz Real Estate and David Saban and Moshe Berami from Evenis Group.
Adv. Kalfon says, “They were seeking a luxury project in Tel Aviv and the Hagag Group project is considered desirable and in a very central location. The buyers do not live in Israel and see the purchase as an investment deal but are also buying it as a precaution due to the sensitive situation Jews find themselves in around the world.”
He adds, “Many foreign residents have been interested in buying in Tel Aviv recently for the same reason. Every businessman who has succeeded abroad will automatically have a property in Israel – from October 7, 2023, this is really a trend.”
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However, it should be noted that market data still does not reflect a significant increase in purchases by foreign residents since the outbreak of the war. According to data from the Chief Economist’s Department at the Ministry of Finance, there has been a slight increase since the end of 2023, but from a historical perspective the level is still low.
In January 2025, purchases by foreign residents in Israel totaled 150 apartments, which was about 1.9% of all transactions in the market that month, and since 2015 the rate of transactions by foreign residents has not crossed the 3% mark. In Tel Aviv, less than 20 apartments were purchased by foreign residents in January 025 while in Jerusalem 93 apartments were bought – about 62% of all purchases by foreign residents in Israel this month.
The Tel Aviv housing market is currently going through a challenging time, mainly due to high interest rates. Within that, the luxury market is facing even greater difficulties. “
It’s very difficult in Tel Aviv right now,” says appraiser Teddy Harel. “There’s a lot of supply, mainly because of the new projects, and relatively little demand. 2024 was a tough year. In the luxury market, mainly new apartments are being sold during this period, and usually to foreign residents and people in the upper echelons.”
Infinity Tower is the Summeil district of Tel Aviv between Ibn Gbriol, Arlozorov, Jabotinsky and Ben Sarok Streets, adjacent to Africa-Israel’s DUO project. Infinity Tower will have 53 floors with 287 apartments on a 3,100 square meter lot.
The Infinity and DUO towers will be built on the site of low-rise residential buildings, some of which are the remains of an Arab village that was evacuated in 1948, where residents had lives in an unregulated manner for decades. Only after negotiations with the tenants, lawsuits and evictions, was it possible to get the construction plan underway on the site, a few years ago.
“This is a very sought-after complex,” says Harel. “This is the center of the center of Tel Aviv. Everything is within walking distance or a scooter ride from the city’s main places – and in a few years the light rail Green Line will pass nearby.”
Published by Globes, Israel business news – en.globes.co.il – on April 14, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
