Trends in Luxury Property Rentals
Herzliya Pituach and Herzliya Bet
By Daniel Wax
Last summer months came with a decline in the demand for rentals in the Herzliya Pituach, Herzliya Bet and Kfar Shemaryahu areas. This comes as a result of the uncertainty that is so typical of the current atmosphere in the market.
Gadi Blumberg, Partner & Manager of the Herzliya Bet department and Susan Nisim, Real Estate Consultant & Manager of the Foreign Company/Embassy Department share their reports on various causes for these trends:
Susan: “In the past, during the summer as well as the various Holiday seasons, rentals were at their peak, as opposed to this year in which we’ve seen more moderate activity. This is manifested in less demand; fewer staff and employees sent to Israel and lower budgets allocated buy companies and embassies.”
Gadi: “When it comes to rentals in Herzliya Bet , I’m of the feeling that there is less willingness to sign long-term contracts. If in the past many rental deals were closed reflecting high pricing, today, similar deals take longer to materialize. In my view, many Israelis are reluctant to make long term commitments.”
How do you explain that?
Susan: “I believe that the decline in demand is a product of the financial situation in Europe, combined with the weakening of the Sterling and the Euro, which has dramatically effected the ability to rent property. There is no doubt that the European market has suffered substantial tremors due to the last crisis which has destabilized Europe’s economy and is felt here as well. I see clearly that companies have made dramatic cuts in budgets that were specifically allocated for property rentals, which naturally takes its toll on the local market. The same trend can be found with private foreign residents.”
Gadi: “I presume this is a result of the general financial uncertainty. In times of instability, there is an understandable tendency to be fearful of long-term commitments, especially when it comes to large sums of money.”
What type of property is most sought after for rent in Herzliya Bet and Herzliya Pituach?
Gadi: “Many people look for new houses with higher quality finish levels. In addition, the houses need to be suitable for a family with 3-4 children, close to education institutions and in overall good areas. As far as the market in Herzliya Bet is concerned, most of the properties that make these requirements tend to be in a higher price range than what people are prepared to pay.
That being said, there is now a rental listing in Herzliya Bet, unique and exceptional in size for that neighborhood, exclusive to our Exclusive Selection Department. It is a 690 sqm house built on a 1 Acre property. The vast land and vegetation surrounding the house make up to a unique and extremely special atmosphere. It is suitable for a family, Ambassador or CEO; ideal for hosting guests; has two kitchens; lots of parking and a large and completely private swimming pool!”
Susan: “When it comes to this area of Herzliya Pituach, in most cases, the renters are looking for a property suitable for a family in a good area and near schools and kindergartens. For Embassies and companies, the emphasis is on well-maintained, modern and well-equipped properties. Much importance is given also to space for hosting guests and events comfortably. Naturally, a swimming pool increases the rental price as well as the appeal of the property.
For example, today we are exclusively offering a unique house only a few steps away from the beach. This is a gorgeous villa with 6 bedrooms, 4 floors and an elevator. Classic for families, in a great location with a breathtaking view of the sea from each floor!”