No sales in six months for Tel Aviv luxury tower as foreign buyers stay away
Aviv Group’s 50-apartment project on Herbert Samuel Street recorded 20 sales worth NIS 214 million ($71.3 million) through the end of 2025. But not a single apartment was sold in the first half of 2026, contributing to a NIS 8.5 million ($2.8 million) loss for the developer.
Luxury properties are also facing demand challenges. For six months, not a single apartment was sold in the Aviv Group and Lenny Group project on Herbert Samuel Street in Tel Aviv. The tower, which rises 18 stories above the sea, will contain 50 apartments with some of the highest price tags in the country.
According to Aviv Group’s second-quarter financial report, by the end of 2025, 20 apartments in the project had been sold for a cumulative NIS 214 million ($71.3 million), an average of almost NIS 11 million ($3.7 million) per apartment. The average price per square meter was NIS 128,000 ($42,700). In 2025 alone, 10 apartments were sold, with the average price per square meter rising to about NIS 145,000 ($48,300). In November last year, media reports said that an apartment on the 10th floor of the project had been sold for NIS 58 million ($19.3 million).
However, from the beginning of 2026 through June 30, the reporting date, not a single apartment was sold in the project. Given the high prices, the project has a limited target market from the outset. The company is targeting mainly foreign residents and believes the security situation has kept many of them away from Israel this year.
Aviv Group purchased the plot for the luxury project on Herbert Samuel Street together with Lenny Group for NIS 250 million ($83.3 million) from a group of businessmen. The company estimates that the project will generate approximately NIS 560 million ($186.7 million) in revenue. Construction began in 2025 and is expected to be completed in December 2029.
This is the first financial report published by Aviv Group, controlled by Doron Aviv and Dafna Harlev, after the company issued bonds on the Tel Aviv Stock Exchange for the first time on June 24. During the reporting period, Aviv Group was also marketing another project on Wissotzky Street in Tel Aviv, where it did not sell a single apartment either. However, almost all of the apartments in that project had already been sold in 2025. The final apartment was sold after June 30 and therefore is not included in the financial report.
In practice, this means that Aviv Group did not record a single apartment sale during the first half of 2026. The group recorded a net loss of NIS 8.5 million ($2.8 million) in the first six months of the year. The main reason was a decline in income from apartment sales, which fell from NIS 50 million ($16.7 million) in the corresponding period of 2025 to just NIS 20 million ($6.7 million) between January and June 2026.
Aviv Group cannot yet recognize revenue from apartment sales in the luxury project on Herbert Samuel because the project is still in its initial stages of construction. By contrast, in 2025 the company recognized a significant portion of the revenue from the Wissotzky Street project, where construction had been completed.
After the reporting period, during the third quarter, Aviv Group began marketing a new project in Ramat Efal. It recorded 30 early registrations, but no signed purchase agreements have yet been reported.
Aviv Group is nevertheless continuing to build its development pipeline. During 2025, it won Israel Land Authority tenders for two complexes in Kiryat Maslul in Herzliya, where 254 apartments can be built, as well as two plots in the Sirkin complex in Petah Tikva, where approximately 400 apartments can be built. In another tender, the company won land for the construction of 326 rental apartments, also in Kiryat Maslul in Herzliya. The Ramat Efal project includes 175 apartments for sale.
