While Israel’s housing market remains in crisis amid the ongoing war, high interest rates and tighter restrictions on contractor promotions, and as real estate companies report a continued decline in new home sales, the luxury apartment sector appears to be largely undeterred.
Despite signs of a broader slowdown, luxury sales continue: Ynet's sister publication Calcalist has learned that real estate firm Y.H. Dimri recently sold three penthouse apartments to foreign nationals in its YAMA Marina project in Ashkelon for a total of approximately 25 million shekels (about $6.6 million).
Though most of Israel’s luxury real estate activity is concentrated in the high-demand central region, notable deals do occasionally emerge in the periphery. The company said this was one of the most significant transactions in Ashkelon in recent years. A family from New York purchased the three luxury units for a combined 24.6 million shekels, with plans to use them as vacation homes during visits to Israel, and eventually to immigrate and live there permanently.
The deal includes a 23rd-floor penthouse spanning 177 square meters with a 97-square-meter balcony and panoramic sea views, sold for 8.6 million shekels; a similar unit on the 24th floor with a 34-square-meter balcony sold for 8 million shekels; and a third penthouse with similar dimensions, also sold for 8 million shekels.
The YAMA Marina development is located on the Ashkelon shoreline, within the city’s marina district. Scheduled for occupancy in early 2026, the project includes three 24-story residential towers with a total of 327 units, all offering sea views. Amenities include a gym, sauna and residents’ lounge.
Real estate appraiser and attorney Erez Cohen described the Ashkelon deal as “exceptional for the city’s housing market.” According to Cohen, “Three penthouses selling for a total of roughly 25 million shekels reflects unusually high price levels for Ashkelon. The average price in the deal comes to about 40,000 shekels per square meter, while the current average in the marina neighborhood is around 23,500 shekels per square meter. That ratio puts the deal on par with luxury transactions in Israel’s high-demand areas.”
Erez Koren Photo: Omer KorenHe called the sale “somewhat surprising given the current slowdown in the housing market, especially in the luxury segment, but demand is still present.”
Cohen added that the steep prices reflect strong demand, particularly due to the project’s beachfront location. “When it comes to foreign buyers looking for a high-end living experience and a distinctive property, the appeal increases,” he said.
“Foreign nationals were once a major force in Israel’s luxury housing market, especially in coastal cities. Even with the weakening of the dollar against the shekel, this may still be a worthwhile investment for them. Rising antisemitism abroad is also likely pushing more Jews to consider buying real estate in Israel—whether for personal use, long-term investment or simply as a refuge, if needed.”
Amir Cohen Photo: Uzi AvrahamAmir Cohen, the company’s deputy CEO for marketing and sales, noted a marked increase over the past year in interest from foreign nationals, particularly from North America, South Africa, France and the United States. “Some buyers have already made aliyah,” he said, using the Hebrew term for immigration to Israel, “while others are looking to secure a home in Israel that they can turn to if necessary. The October 7 attacks were a turning point for many, making it clear that they’re no longer truly welcome abroad and may even be at risk.”
He added that while many affluent buyers have rushed to purchase properties in traditional high-demand areas such as Tel Aviv, Netanya and Jerusalem, there has also been a growing interest in more affordable areas. “This recent purchase by American Jews joins other deals we’ve closed in recent months in Ashkelon, Netivot and the Karmey Gat neighborhood of Kiryat Gat, with families from New Jersey, Australia and France.”