A look into Valery Kogan's astonishing Caesarea palace
(Video: Igal Harari, Israel Sotheby's Realty)
Israel's most expensive neighborhood
The most expensive neighborhoods in Israel were examined in the survey, which focused on neighborhoods characterized by shared buildings and unimproved construction (that is, neighborhoods with private homes were not taken into account).
We've looked into the prices of "regular" apartments (that is, the survey did not include garden apartments or penthouses). This was done in order to enable the survey to present an average of the most common product - a residential apartment - which is more common and available to the average buyer than a villa in a luxury neighborhood.
As part of the survey, we examined neighborhoods characterized by dense urban construction (that is, neighborhoods with single-family homes were not taken into account), and the prices of "regular" apartments were analyzed (that is, the survey did not include garden apartments or penthouses).
This was done to enable the survey to present an average of the most common product - a residential apartment - which is more common and available to the average buyer than a villa in a luxury neighborhood.
According to Attorney Ohad Danos, former chairman of the Real Estate Appraisers Association in Israel, the most expensive neighborhood is the western part of Lev Tel Aviv — nestled between Tel Aviv's Bograshov Street to the north, King George Street to the east, Allenby Street to the south, and the sea to the west.
"In terms of absolute prices, a two-room apartment in an old building would cost about NIS 4 million, while a new two-room apartment would take you back about NIS 5 million," says Danos
The average price per square meter for old apartments is about NIS 70,000 ($18,900), and the average price per square meter for new apartments is NIS 80,000-100,000 ($21,600-$27,000), depending on the proximity and view of the sea.
"In terms of absolute prices, a two-room apartment in an old building would cost about NIS 4 million, while a new two-room apartment would take you back about NIS 5 million," says Danos.
"The reasons for the high prices are, among other things, the location of the neighborhood, the high demand resulting from the rarity of properties for purchase, and the relative proximity to entertainment centers and the beach."
Israel's most affordable neighborhood
"Finding Israel's cheapest neighborhood was a greater challenge," admits Danos. "In an effort to reach the widest audience, we did not take into account neighborhoods populated by minority groups in Israeli society, such as Haredi neighborhoods or non-Jewish neighborhoods, and it is possible that some of them have lower housing prices than the neighborhood that was chosen for the survey within its framework.
"The way to find the cheapest neighborhood went through the Central Bureau of Statistics' socioeconomic index tables, focusing on clusters 1-4 (the lowest)," Danos adds.
"In fact, most communities in the lower brackets are Haredi and non-Jewish. According to the survey, the cheapest neighborhood in Israel, both in terms of price per square meter of construction and in terms of absolute apartment prices, is located in the city of Yeruham, which sits in Cluster 4.
"We're talking about the Eli Cohen neighborhood in eastern Yeruham, between Nachal Avnon Street to the north and Eli Cohen Street to the south. The buildings in the neighborhood are old and were built in the 1960s, while more advanced buildings were built in the 1980s.
The survey revealed that the average price per square meter of construction in the neighborhood, according to transactions made between 2022-2023, is about NIS 5,740 ($1,550). This price puts the value of the apartments in the neighborhood as the lowest in Israel: an average 65-square-meter apartment in the Eli Cohen neighborhood in Yeruham costs only NIS 373,000 ($100,710)."
Israel's costliest street
For this category we examined two streets — one was evaluated based on absolute apartment prices relative to its small geographic area, and the other based on price per square meter of built area. The street with the highest absolute prices per small geographic area is Galei Techelet St. in Herzliya Pituach.
On the other hand, Herbert Samuel St. in Tel Aviv, located between Gordon St. to the north and Daniel in the south, is considered the most expensive street per built square meter and is known as Israel's "Golden Mile" among real estate agents.
This street is located in one of the most expensive neighborhoods in Israel and is known for its open seafront view. The prices range between NIS 100,000-150,000 ($27,000-$40,500) per built square meter, making it difficult to find an apartment of 100 square meters for less than NIS 10 million ($2,700,000). If you want a sea-facing apartment, the price could potentially reach NIS 15 million ($4,050,000).
Israel's largest property
"As part of our survey, we examined private homes in Israel, which of course have an inherent advantage over penthouse apartments in residential towers, as large as they may be," says Danos. "Although the penthouse apartment in [Tel Aviv's Shalom Meir Tower], for example, which was purchased last year by the Irani family, covers an area of about 1,200 square meters, there are larger private homes.
Additionally, we did not examine the areas of the yards, since in most rural communities, some own 30 dunams (7.5 acres) of land and more, and therefore we only examined the built area in private homes."
According to the survey, the largest property in Israel is a palatial mansion built by Russian-Jewish billionaire Valery Kogan in Caesarea (not far from the private residence of Prime Minister Benjamin Netanyahu), which covers an area of about 5,000 square meters.
"Generally, Israel's wealthy are content with about 1,000 square meters of construction with extensive yards," adds Danos, "but oligarch Kogan is an international businessman and the aristocratic-European scent can be sensed in every square meter of construction."
Kogan listed the property for sale in 2020 for NIS 845 million ($258 million). Since no buyer was willing to sump on the bargain, Kogan cut his asking price by NIS 200 million in 2022 to a measly NIS 650 million ($195 million) instead. The property is still up for sale in case you've got some spare change lying around.
The 3-acre plot was purchased in 2008. Five homes that once stood on it were demolished for the construction of the mansion.
According to luxury real estate agency Israel Sotheby's Realty, which is responsible for the sale, the mansion overlooking the Mediterranean Sea is the fancies property in Israel.
According to Sotheby's, the property includes a private spa with a gym, saunas and a heated pool, a wine cellar, a billiard room, a home cinema, and it's all powered by an eco-friendly power infrastructure. The exterior includes lawns, two fountains with Roman statues, and an external swimming pool with stereo system and TV screen. The interior design includes natural marble and onyx mosaics
The entrance hall extends over 230 square meters and is decorated with crystal chandeliers and marble columns. On the top floor, there are three bedrooms, a study, and a central suite with two bathrooms, two dressing rooms, and two dressing areas. The ground floor includes a 200-square-meter living room, an expansive dining room, a smaller dining area, a kitchen, and a library.
Israel's costliest property
You might have thought that the largest property would also be the most expensive, but the prices of luxury properties vary depending on location. Despite Caesarea being considered one of Israel's more high-end communities, there is more demand for luxury homes in Herzliya Pituach.
"This is the former home of the American ambassador that was sold by the U.S. government to a company owned by the late businessman Sheldon Adelson for an eye-popping sum of about NIS 300 million ($81,000,000) in 2020," says Danos.
The house, with a built area of about 1,000 square meters, was valued at NIS 300,000 per square meter, which is 52 times higher than the cheapest property in Israel (in Yeruham's Eli Cohen neighborhood.
Although Kogan is asking for much, much more for his property, when taking size into account, it is worth no more than NIS 120,000 per built square meter.
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