The Israeli real estate market is currently marked by a sharp decline in transactions. Developers are selling fewer new apartments, and the secondhand market has slowed to a crawl. The result: a buyer’s market and more room to negotiate with developers.
One approach that’s proving especially effective in this environment is joining a buyers group—not to be confused with a purchasing group. The difference is key: in a purchasing group, members pool funds to buy land and become de facto developers, taking on significant risk in exchange for potential savings. A buyers group, by contrast, is a collection of buyers negotiating as a bloc to receive discounts on apartments sold directly by developers.
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New construction in the center; buyer groups are not purchasing groups
(Photo: Ori Chudy)
This strategy has proven effective even in normal times, but in today’s slowed market, it can make a serious impact. Asaf Livnat, founder and CEO of Relevant, a real estate investment firm that organizes buyers groups, shares essential insights for those considering this path.
Discounts on preconstruction units? Not always the best deal
Buyers are often drawn to preconstruction sales, thinking they offer the lowest prices. But developers under pressure—due to rising interest rates or bank obligations—may be more willing to offer steeper discounts on nearly finished units.
Do the math first
Especially for investment properties, buyers must assess whether the deal makes economic sense. A buyers group offers significant leverage, but true value lies in the details—such as future transportation infrastructure, nearby medical centers or neighborhood development plans that could boost the property's worth.
Join forces for legal representation
The purchase agreement is a crucial component when buying from a developer, and often contains harsh terms. A shared attorney representing the entire group can negotiate better conditions than a single buyer could on their own.
Organize for the long term
An organized group can continue to benefit after moving in—through joint property management, bulk purchases of furniture or services and reduced hassle overall. It helps to be part of a small, connected community that supports its members over time.
Think long-term before you commit
If you're buying a property that won’t be ready for several years, be aware of the financial risks. Your current income may be high, but circumstances can change. Committing to future payments requires a realistic assessment of long-term financial stability.
Bottom line: joining a buyers group can be a smart move—especially in today’s market—but it requires informed, strategic planning from the outset.