French businessman buys 8 Jerusalem apartments

A French-Israeli businessperson has bought eight apartments in the RAYK Borochov project in Kiryat Yovel in Jerusalem for NIS 24 million. The average price per apartment was NIS 3 million and the average price per square meter was NIS 34,000. All the apartments were purchased for investment.

The apartments purchased include four three-room apartments, each about 74 square meters in size, plus 9 square meters of balconies, parking and storage, at an average price of NIS 2.75 million per apartment, and four four-room apartments, each 96 square meters in size, plus a 12 square meter balcony, parking and storage, at an average price of NIS 3.33 million per apartment. The apartments are on floors 2-12 out of the tower’s 27 floors.

In recent years, prices for foreign residents have increased considerably due to the strengthening of the shekel. In the last three years, the shekel has strengthened by 20% against the dollar, and by 15% against the euro.

RAYK Borochov is at 49-53 Borochov Street in Kiryat Yovel and is being developed by Aspen Group unit Rayk Real Estate Group As part of the project, four buildings will be demolished and replaced by 9- and 27-floor buildings with 190 units, a commercial frontage and underground car park..

The mix of apartments includes two to six-room apartments, and the project will also include shared facilities for tenants. The current deal is part of a broader marketing effort that has seen the company sell 25 apartments over the past two months.

According to the developers, the deals were signed at an average price of NIS 34,000 per square meter, which reflects a discount of about 3.5% on marketing prices. The buyer received benefits, including a credit of NIS 10,000 per apartment for upgrades, exemption from inflation-linked indexation, and exemption from lawyer’s fees.

Overall the deals carried out are 7%-8% lower than average prices in the market in the immediate area. The company makes savings in marketing and sales costs.

According to the Yad2 website, rental prices for new 3-room apartments in the neighborhood are around NIS 7,000 per month and rental prices for 4-room apartments are around NIS 8,500 per month, which is a potential annual return of 3%, which is significantly higher than the average return in the city, which is around 2%. These returns will only be realized when the project is occupied in about three years.

RAYK Real Estate CEO Yossi Rayk says, “The current deal reflects a broader phenomenon that we have identified in recent months, which is the increased entry of private capital – local and international – into the Jerusalem residential market, with the understanding that the city currently presents high resilience and real improvement potential.

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“Investors are looking for properties that embody an ‘accessibility premium’ with proximity to the light rail lines, and an urban specification that guarantees a competitive advantage in the future rental market.

“Kiryat Yoval is at a turning point where the old housing supply is being replaced by modern buildings, which create price arbitrage in favor of buyers in the early stages. The rental market in the neighborhood is changing architecturally and demographically, and demand from a high-quality, student clientele creates exceptional cash flow stability compared with alternatives in the center of the country.

“The centers of renewal in Jerusalem are now a clear target for those looking for value for their money.”

Real estate appraiser Kobi Bir says, “Exemption from linkage and a discount in the form of exemption from lawyer’s fees – about NIS 5,000 per apartment – have been given for a long time by many contractors in Israel, due to the halt in sales because of the war, and now also because of the weakening of the dollar, which prevents foreign residents, mainly from the US, from purchasing apartments.”

“A price of NIS 34,000 per square meter is at the lower end of apartment prices in renewal projects in the area, and the location of the apartments on the lower floors can actually explain this. If we add to this price the aforementioned discount of 3.5%, we get a value of about NIS 35,200 per square meter, which is what a buyer of an apartment in the project without a discount should pay. Not a high price, but not a bottom price either. It certainly sounds reasonable, but on the low side.”

Published by Globes, Israel business news – en.globes.co.il – on June 14, 2026.

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