The Impact of COVID-19 on Savyon’s Luxury Real Estate Market

Since the beginning of the COVID-19 pandemic, there has been a global shift in real estate prices, with a continuous upward trend. This trend is also evident in Israel, including the luxury real estate sector, where prices have significantly increased.

Savyon, which has always been a sought-after location due to its character and large land plots, has followed this trend, experiencing a notable price surge. Among Israel’s luxury communities and surrounding areas, Savyon has historically been known for having relatively lower real estate prices compared to its counterparts.

A Changing Market Driven by High-Tech Growth

The rapid expansion of Israel’s high-tech sector has introduced substantial capital into the market, and paradoxically, despite economic difficulties faced by small businesses, the demand for luxury properties continues to rise steadily.

Currently, due to intense sales activity and a steadily declining supply, Savyon has become a seller’s market across the board. Properties that had been on the market for years have been sold within the past few months—at their asking prices.

Will the Trend Change?

At this stage, there is no indication that prices will decrease. The COVID-19 pandemic has prompted property owners to reevaluate their housing preferences. While there was once a growing trend toward luxury high-rise living, buyers now prioritize privacy and land ownership over communal spaces, shared elevators, and crowded environments.

The continued demand for high-end properties, coupled with a limited supply, has led to a significant rise in home and land prices throughout Savyon.

Land Valuation and Market Trends

The pricing of land in Savyon is determined by size, topography, and location. Due to the limited availability of land, older homes are increasingly being purchased for their plots, with pricing reflecting both the land value and the existing structures.

The most significant price increases have been seen in 1,250 square meter lots, while larger plots have also risen in value, albeit at a more moderate pace.

The Luxury Rental Market

From the onset of the pandemic in March 2020, the luxury rental market in Savyon came to a near standstill. While the months of March through June saw heightened activity in property rentals, the overall slowdown in many sectors caused a freeze in the rental market.

Many existing rental properties remain under long-term lease agreements, while others have been sold, drastically reducing the available inventory. As a result, landlords now hold a strong negotiating position, leading to significant rental price increases.

Future Development in Savyon and Its Surroundings

Savyon is poised for significant expansion in the coming years, including:

✔ A Major Commercial Center Expansion – The existing shopping center will undergo substantial growth, transforming into a full-scale shopping mall.

✔ New Business and Office Complex – A large-scale commercial and office project is planned from the gas station up to the entrance of Savyon.

✔ Planned Residential Expansion – Development will include high-density housing, a new high school, and senior living communities. Additionally, in the open area adjacent to Ganei Yehuda, 42 residential plots of 300 square meters each are being planned.

✔ New Road Infrastructure – A connecting road from Route 461 to Route 471 will be constructed, passing between Savyon, Ganei Yehuda, and Yehud, and extending toward Magsheemim.

✔ Savyon’s Residential Expansion – Approval has been granted for the expansion of high-density housing in Savyon, extending toward Ganei Yehuda.

Market Stability Moving Forward

Even if the rapid price increases slow down, current market trends suggest that property values will remain stable. The only factor that could potentially balance the market is an increase in the supply of new properties.

Looking to Buy, Sell, Rent, or Lease a Property in Savyon?

For expert consultation and additional information on Savyon’s luxury real estate market, feel free to contact us:

📞 Anat Harran Luxury Real Estate Consultants & Brokerage
📍 Phone: 052-6595535