17.5 M NIS Million for a Luxury Property in Savyon

“Conservative Pricing”: NIS 17.5 Million for a Luxury Property in Savyon – The property includes two buildings finished to a high standard, featuring distinctive Jerusalem stone exterior finishes.

The Transaction:
In Savyon, a luxury property with a total built area of 450 sqm was sold for NIS 17.5 million. The property includes a main residential building with seven rooms and a built area of 400 sqm, as well as a smaller guest structure of 50 sqm. The total plot size on which the buildings are located is approximately 1.2 dunams. The transaction was carried out with Montefiore Real Estate Group, Israel’s top luxury real estate agency, which specializes in the marketing and sales of luxury residences and projects across Israel.

The Savyon Market:
Savyon is considered a prestigious community, although property prices there are lower than those in Herzliya Pituach and do not reach national record levels such as those seen on Galey Techelet Street in Herzliya. A broad review of single-family homes sold in the community over the past year shows that fewer than ten transactions were recorded with the Israel Tax Authority, ranging from NIS 10.6 million to NIS 18.4 million, with most deals clustering around NIS 14 million.

Naturally, there are more luxurious villas in the area valued at higher amounts, and transactions exceeding NIS 20 million do appear in the Tax Authority’s database. However, this is not the typical range. It should be emphasized that these figures refer to all transactions carried out in the area, without differentiation by land or building size.

The Property:
This is a villa constructed based on a building permit issued in late 2007, replacing an older single-family home that previously stood on the plot. The design was apparently inspired by 19th-century Arab architecture. The asking price for the villa was NIS 18.5 million, but it was ultimately sold for NIS 1 million less. In our assessment, if one were to break down the value into land costs and construction costs, taking into account that the home was built to a particularly high standard, though it is now 18 years old, the total could even exceed the transaction price. However, a property’s value is not determined solely by land and construction costs; personal preferences and overall market conditions also play a role. Therefore, based on prices of other properties sold recently in Savyon, the transaction price appears reasonable.

The Broker’s Thoughts:
Roie Kaner, CEO of Montefiore Real Estate Group, says:
“This transaction clearly illustrates the global nature of Israel’s luxury real estate market, particularly in high-end communities. The buyers are foreign residents, which highlights the continued international interest in premium properties in Israel, even during periods of reduced market activity.

“The property itself is exceptional and truly a work of art: a home fully clad in Jerusalem stone, including unique Jerusalem slab stone, with complex stone masonry work carried out by highly specialized craftsmen, and exceptionally high finishing standards. This is a style that is uncommon today in Savyon, where most new construction tends toward modern lines.

“This uniqueness required a very precise and focused marketing process, both in the local market and internationally, in order to identify buyers who appreciate the architectural and artistic character of the home.

“Savyon is a prestigious community in which very few transactions were completed over the past year, so every significant deal carries special weight and underscores the importance of exposing luxury properties in exclusive areas to an international audience—especially at a time when the security situation for Jews abroad is unstable and many are seeking a residential alternative in Israel.”

The Appraiser’s View:
“This is a unique property located in the heart of the community, in one of the most sought-after areas of Savyon,” says appraiser Oshri Aharoni. “Land values in this area are estimated at approximately NIS 11,000 per sqm, meaning the land alone is valued at around NIS 13 million. The remaining consideration reflects the value of the buildings, which were constructed at relatively high cost, including the use of Jerusalem stone, thick walls, and a distinctive architectural design with Jerusalem-inspired influences.

“The estimated construction cost, considering the nature of execution and finishing materials, is approximately NIS 6–8 million. In light of these data, the transaction price reflects conservative pricing relative to the location, construction quality, and characteristics of the property, and can be seen as a deal executed at the lower end of the price range typical for similar properties in the heart of Savyon.”

Bottom Line:
In a different period, the property might have sold for a higher price, but these are not considered favorable times for luxury real estate.