The center of Herzliya is a large and well-established neighborhood encompassing about a quarter of the city's urban territory. It is located east of Ayalon Highway and the coastal railway line. The neighborhood features mostly old, low 3- to 4-story buildings, though in recent years a number of taller buildings were built as part of urban renewal projects. Most of these were TAMA 38 projects for seismic reinforcement. A number of demolition and construction projects are now in the process of being approved and are expected to refresh and increase the apartment supply.
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The neighborhood affords many opportunities for shopping and recreation, as well as public facilities such as banks, government offices, etc., located mostly along the main arteries – Sokolov Street, Ben Gurion Boulevard, and Harav Kook / Arlozorov Street. Demographic data indicates that the neighborhood's population has been aging: the 60+ age group has grown the most in recent years, while the proportion of young parents is decreasing. The reason is probably the area's comfortable living conditions, with veteran residents staying put, combined with a relative scarcity of new apartments, making it difficult for young buyers to settle there.
Population
The population is diverse and includes young couples, older families, singles, students, and quite a few pensioners. The neighborhood's proximity to shopping and entertainment centers and to a variety of public facilities, such as educational facilities, community centers, cultural institutions, and more, probably contributes to its diversity.
The local population has grown by 8% over the last decade and is expected to continue growing in the next decade, following the implementation of several demolition & construction projects that have already been approved.
Transportation
Due to its central location and proximity to employment, shopping, and entertainment centers, the neighborhood lacks sufficient parking spaces and traffic is often congested, mostly on and near the main arteries: Ben Gurion Boulevard and HaAtzmaut, Sokolov, and HaRav Kook Streets.
Public transport routes (PTRs) to be constructed along these streets in the next few years are expected to restrict private vehicle transportation even further.
However, the central bus station (situated in the area) and the neighborhood's main streets provide many bus lines that connect it with the rest of the city, cities in the Sharon area, and Gush Dan. The municipal rail station is 15 minutes away by bus, allowing (under normal circumstances) to quickly reach the center of Tel Aviv and other coastal cities. The construction of PTRs is expected to make bus rides quicker, more comfortable, and more reliable. In the future, a light rail line may also pass through the area on its way to the center of Tel Aviv.
The neighborhood's bicycle lanes are discontinuous and do not allow cyclists to ride without interruption, but the municipality plans to pave a network of lanes that will enable safe and pleasant cycling to a variety of destinations throughout the city.
Advantages
- Close to shopping centers, recreational activities, and public facilities
- Good access by public transport, expected to improve further.
- Diverse population.
Shortcomings
- The use of private vehicles will become more difficult.
- Unsafe bicycle lanes.
- Urban renewal projects throughout the neighborhood will cause construction nuisances.
Supply and prices
Last year saw a decline of over 50% in the number of deals compared to 2019, mostly in the purchase of new apartments. A total of 229 apartments were sold throughout the year, compared to 471 over the previous year. The sale of 3-room apartments (considered mostly investment properties) decreased by 60%. In the course of the entire year, only 16 such apartments were sold (compared to 72 in the previous year).
Prices, on the other hand, remained almost the same. The prices of second-hand apartments did not change at all; the price of new 4-room apartments fell by 1.7%, or about 400 NIS per square meter.
The surge in the number of building permits, granted in 2019 to over 20 new projects, has stalled almost completely. In May 2020 the Herzliya Municipality announced it was freezing all building permits in the area.
Today, the neighborhood is full of TAMA 38 projects, with no less than 200 buildings with permits (or in the process of acquiring permits) for reinforcement and building additions (50%) or demolition and construction (40%). Renovo's project on 5-11 Ezra Hasofer Street is currently under construction in the northwest part of the neighborhood, bordering on the Green Herzliya neighborhood. This is a TAMA 38 demolition-construction project that will offer 4- and 5-room apartments.
In the Weizman Street area, a demolition-construction compound called the Metropolis Compound will offer 278 apartments in buildings 11 to 14 stories tall. The Nitsba company is currently building the Herzliya Nitsba Park – a compound of five buildings with a total of 406 apartments. A project under construction in the east part of the neighborhood, at 24 Kehilat Zion Street, will offer 4- and 5-room apartments and penthouses at prices beginning at NIS 2,720,000 .
For buyers of boutique and luxury apartments, the Av-Gad company is building a project on 8 Yehuda HaLevi Street, offering a gorgeous two-floor garden apartment in a boutique building with only 13 apartments. The H project by HKR, on Kehilat Zion Street, is offering one last penthouse apartment, with 147 sqm. of floor space and balconies totaling another 130 sq.m., in a 6-story building with only 11 apartments.
Plans for the future
PTRs: In the upcoming years (the precise schedule is unknown), public transport routes are to be paved on Ben Gurion Boulevard and on Haatzmaut and Harav Kook streets. Their construction is expected to reduce the number of lanes for private vehicles and worsen traffic congestion in the area, but it will also enable faster public transport.
Demolition-construction: there are a number of urban renewal projects in the neighborhood, including demolition-construction projects. Since they involve the replanning of large parts of the district, they allow public facilities, such as parks and public buildings, to be added to dense areas. On the other hand, these projects will increase the burden on the existing urban infrastructure. Consequently, the municipality is opposed to their continuation until the government invests in infrastructure.
Light rail line: the government plans to construct a light rail line that will connect Rehovot in the south with Ra'anana in the north, passing through Ness Ziona, Rishon LeZion, Holon, Tel Aviv, Herzliya, and Ramat HaSharon. The light rail network will offer easy and comfortable access to employment, residential, and recreational centers. However, it has yet to be approved and budgeted, and may not be implemented at all. In any case, it is not expected to be completed before 2035.
Investment opportunity?
Having an apartment in the center of Herzliya is always a good idea. Yet, if up until two years ago, you could buy a 3-room apartment in an old building in the neighborhood, hoping it undergoes renovation as part of a TAMA 38 project, and then resell it as a new 4-room apartment at a 60% profit, the chances of the same scenario happening today are slim. According to the government plan, in October 2022, the TAMA 38 program is to be scrapped entirely.
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It is likely that in upcoming years, contractors will attempt to implement demolition-construction plans. Of course, the municipality can initiate its own urban renewal plans, but such a process will take much longer than TAMA 38 projects.
That doesn't mean there's no upside to buying an apartment in central Herzliya. The city's proximity to Tel Aviv makes it a magnet for young families seeking a high standard of living and prices much lower than in the neighboring metropolis. In terms of return on rental property, this is a solid investment, with a yearly profit averaging 3.3%.
The numbers
- Socio-economic index: 6 out of 10
- Madlan education index: 7.8 out of 10
- Percentage of children in the neighborhood: 32%
- Average price of a new 4-room apartment: 2,498,000 NIS
- Average price of a second-hand 4-room apartment: 2,079,000 NIS
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