Teaser: Race for the Last Home in Judea and Samaria: Villas Disappear as Prices Climb
Arutz 7
Ze’ev Epstein, Owner and CEO of Harei Zahav: “Ground-Level Homes in Judea and Samaria Are a Dying Breed”
Yoni Kempinski, Arutz 7: Arutz 7’s booth at the Real Estate City in Eilat, and we’re joined by Ze’ev Epstein, the owner of Harei Zahav. Hello.
Ze’ev Epstein, Owner and CEO of Harei Zahav: Hello, hello.
Kempinski: So, you’re building in Judea and Samaria. How many settlements are you building in, or have you built in?
Epstein: We have projects in 25 settlements, from the south to the north, east, everywhere.
Kempinski: Impressive. First, I have to ask about the political aspect—can you build in Judea and Samaria, or can’t you? Was there a freeze? Was it worse than that? You know, it’s not always clear what to believe with all the politicians’ statements about what was, what is, and what will be. What’s the real situation on the ground now, and what was it?
Epstein: That sounds like a question from the ’90s. Everything has been functioning there for a long time. There’s massive construction, banks are providing mortgages, and everything is fine.
Kempinski: Even under the previous government?
Epstein: Yes, there’s an inertia—bureaucratic inertia—and everything worked well.
Kempinski: Help us make sense of this, because another topic making headlines now is the issue of military governance and the Civil Administration. How does this affect you, as real estate professionals who just want to build houses, sell houses, and earn some money? Do you feel the impact of Judea and Samaria being under military governance?
Epstein: In the end, there’s a slightly different regulatory framework in Judea and Samaria. It’s both an advantage and a disadvantage. We’re familiar with the regulations and work with them. For the end customer, it doesn’t make a difference—they get their mortgage, their registration, they live in the house, and they’re happy.
Kempinski: When you hear that this might change soon, does that help you, as real estate professionals?
Epstein: If annexation happens and the area becomes fully Israeli in every way, prices will certainly go up even more. Right now, there’s still a reverse premium, a sort of discount in the area, which makes it an opportunity.
Kempinski: Still an opportunity—nice. Tell me, how do you build in Judea and Samaria? I keep seeing ads for various projects claiming these are the last ground-level homes. So, is that it? Have we moved past ground-level homes and transitioned to high-density, multi-story construction?
Epstein: That’s really the case. In almost all new areas, there are no more ground-level homes. Those that are being built now are mostly in older inventory, and it’s truly a species on the verge of extinction.
Kempinski: You call it "on the verge of extinction," but as a real estate professional, wouldn’t you say, "I want to build upward in these communities—it’ll bring new infrastructure and be worthwhile"?
Epstein: As a real estate professional, I want to build everything—ground-level and multi-story. But the villa is a premium product, and there’s nothing like a villa. It’s much more desirable, but as I said, there are fewer and fewer of them. Prices keep rising, and today, there’s a lot of high-density, multi-story construction. In most places, this has become the main product—the primary one.
Kempinski: And does the sense of community remain intact?
Epstein: A community settlement isn’t just about villas. It’s a much more holistic and complex concept. For some people, a community settlement doesn’t fit their lifestyle. But for those for whom it does, it’s an amazing option. You get a blend of living in nature—since these settlements are in rural areas—and a sense of community life, where your neighbors aren’t just neighbors, but friends. Some people don’t like this, but for others, it creates a different quality of life. And another aspect is education. Here, there’s no downside—only upside. In community settlements, it’s much more enjoyable and convenient to raise children. Kids can walk to school on their own, be with friends, and enjoy a better social life in the village. It’s unequivocally better.
Kempinski: The settlers of 2022, essentially your customers, do they have different standards than settlers 20 years ago? Are they looking for higher quality, like suspended toilets or large floor tiles?
Epstein: First, I’ve been in this market for only 15 years, not 20, so I don’t know what things were like two decades ago. But yes, absolutely—if you compare customers from 10 years ago to those today, today’s buyers are much more demanding. They want quality construction, higher standards, detailed specifications, and options for customization. In the end, it’s a great blessing.
Kempinski: They’re demanding, and you’re happy to indulge them?
Epstein: We know how to meet their demands, and they’re also willing to pay more. This creates a normalization of the product.
Kempinski: Okay, Ze’ev Epstein, owner of Harei Zahav, thank you very much.
Epstein: Thank you very much.