What is causing the transformation seen in recent years in the Israeli public's approach to the world of investments? If in the past it was possible to think that this was a passing fad, today it is no longer possible to ignore the reality: the public is leaving the apartment market and looking for alternative real estate avenues.
One area that is gaining real momentum is land investment. What is behind the sharp increase in interest in it, and why are even veteran real estate market experts raising an eyebrow? We examined.
To understand the background, we need to go back to the beginning: Why were Israelis drawn to the apartment market in the first place? The main reason is clear - it is a familiar and accessible market. Almost every one of us knows someone who has purchased an apartment as an investment, and the field is perceived as safe and relatively easy to understand.
But the situation has changed today: apartment prices are soaring, taxes are burdensome, and interest rates are extremely high. For the average investor, the path to an apartment as passive income has become particularly steep. The question "Is it still possible to make a profit from real estate?" has become relevant not only for small investors, but also for experienced entrepreneurs.
And the answer found? Turning to another channel - Land investmentThis trend has been gaining momentum in recent years, as more and more private investors discover the advantages inherent in this field, compared to the complex challenges in the apartment market.
A welcome change
Making the field of land investment accessible to the general public was not a simple task. It must be understood that until recently, private investors hardly entered the field, and rightly so. Unlike investing in an apartment, the land market operates according to completely different rules, and requires a deep understanding and the ability to navigate legal and planning complexities. Not all land is suitable for investment, and finding land with real improvement potential is a task that requires experience and appropriate tools.
Many of those entering this field are forced to seek the help of professionals who know how to point out quality opportunities, but these services obviously involve a fee, and sometimes uncertainty. Furthermore, this type of investment requires a lot of patience, as turning land into productive land requires an orderly administrative process and facing quite a few challenges with the authorities.
But in recent years, a welcome change has occurred. New and emerging land developers have recognized the increase in public interest and have taken on the task of making land investment more accessible, clear, and possible. By developing innovative approaches, emphasizing personal guidance, and deep familiarity with the planning system, they have succeeded in making this world accessible to the average investor, who is looking for a land investment with discretion, responsibility, and foresight. Today, it is no longer necessary to be a great expert to consider investing in land: it is enough to want to understand and to enlist the help of the right people.
A simple and powerful idea
One of the innovative approaches born out of the need to make land investment accessible to the general public is based on a simple but powerful idea: making the client a real partner in the process. Instead of dealing with each step alone, the development company locates land with high profit potential, purchases it itself, and then opens the possibility for private investors to join the investment through a land sharing agreement.
This agreement brings together several investors, each of whom becomes a partner in the rights to the land. In this way, even someone with no prior experience in this world can become involved in a stable and responsible investment without having to deal with bureaucracy, land search, contracts with consultants, or day-to-day management of the investment.
Beyond the convenience of the process, there is also the advantage of power. When several investors work together, a joint force is created that can influence decision-making and significantly stand up to developers or planning bodies. This is an advantage that does not always exist in a single investment.
Additionally, there is a natural alignment of interests between the investors and the development company. Because both parties are involved in the same land investment, there is a real incentive for cooperation, transparency, and proper management - all to maximize the return and realize the full potential of that investment.
Reality is changing rapidly.
The rise in the cost of living In recent years, the country has not spared anyone, but it is precisely from this difficulty that an important insight has emerged: it is no longer possible to rely on what worked in the past and follow the same financial patterns. Reality is changing rapidly, and those who do not adapt their ways may be left behind. One of the most striking proofs of this is the increasing shift of investors from the housing market to the world of land investment, indicating a profound change in perception that is taking place right before our eyes.
However, like any field that attracts interest, this too is a window of opportunity that may close. The day is not far off when the field of land investment will also be crowded, competitive, and more expensive. The big question is who among the public will know how to identify the trend in time, act with discretion, and find a worthy place for themselves within the field before the door closes?