453 luxury apartments heading for occupancy: The big test of Kikar Hamedina

The Kikar Hamedina towers project in Tel Aviv, comprising 453 luxury apartments in three 40-story towers, is expected to receive occupancy approval towards the end of 2026. The project, initiated by about 250 landowners, is being built at an estimated cost of 4.3 billion shekels. The main concern: a flood of apartments in a frozen market, with price drops of 10%-15% in Quarter 4.

The Kikar Hamedina towers project, one of the largest and most complex construction projects in Tel Aviv, is reaching its final stretch. The project includes 453 luxury apartments in three 40-story towers, built for about 250 landowners. The total construction cost is estimated at 4.3 billion shekels, with a credit framework of 2.05 billion shekels from Bank Leumi. The main concern raised in the article is a flood of apartments in a frozen market: so far only 10-15 apartments have been sold, at an average price of about 65,000 shekels per square meter. A real estate agent in the neighborhood reports price drops of 10%-15% in Quarter 4, and appraiser Asaf Gastfreund estimates an 11% drop from peak prices, but notes that premium apartments have barely moved. However, the assessment is that there will not be many sellers in the first year due to capital gains tax considerations – waiting six months to two years almost completely eliminates exposure to business taxation. The project also includes a community center, a school, three kiosks, and a parking lot with 1,600 parking spaces.