Israeli Developers Leverage Consumer Clubs to Boost Apartment Sales Amid Sluggish Market
Israeli real estate developers are partnering with consumer clubs to boost sales through exclusive discounts, offering a secure alternative to traditional marketing during a sluggish housing market.
In an effort to overcome sluggishness in the housing market, Israeli real estate developers are increasingly partnering with consumer clubs to offer apartments with substantial discounts and special financing terms. A notable example is the LEV project in Rehovot by Boni HaTichon, where 72 apartments were sold in less than a week for approximately NIS 183 million, largely driven by a collaboration with the "Mami" consumer club founded by Maayan Adam, which currently numbers around 400,000 women.
The Rise of Consumer Clubs in Real Estate
While long-standing clubs such as "Hever", "Behatsdaa", and "Hitechzone" have historically dominated this space, new players are entering the market to connect organized consumer groups with developers seeking guaranteed sales. According to Roni Cohen, CEO and partner at Eldar Real Estate Marketing, developers are turning to these models to secure certainty during presale phases, bypassing expensive and unpredictable digital or television advertising.
"Instead of spending considerable sums on media without knowing the results, developers partner with a club," Cohen explains. "This provides certainty and saves non-recurring expenses." Members receive conditions that individual buyers typically cannot negotiate, while developers gain a targeted, high-quality audience.
Significant Deals Across the Country
Recent major campaigns highlight this trend. Aura recently collaborated with the "Hever" club, offering nearly 800 apartments across five projects in Hadera, Ramat HaSharon, Ramat Gan, Kiryat Ono, and Ofakim, featuring double-digit percentage discounts and 85/15 financing terms. Similarly, Av-Gad partnered with the "Hot" consumer club, offering discounts ranging from NIS 200,000 to NIS 500,000 on projects nationwide.
"When there are so many advertising campaigns with discounts, people no longer believe them. They think prices are raised beforehand. This is where consumer clubs provide a real advantage by conducting thorough research to verify that the discount is genuine," says Oz Salton, marketing and sales manager at Av-Gad.
Caution and Independent Review Required
Despite the attractive offers, legal experts advise that purchasing through a consumer club does not exempt buyers from conducting independent due diligence. Adv. Alex Sacharov, a partner in the commercial department at Waxman Almagor & Co., notes that while group purchasing power offers clear advantages in pricing and financing terms, buyers must carefully review the contracts.
"An attractive discount might be presented, but the baseline price could still be 10% higher than a comparable property in another project," Sacharov warns. She recommends ensuring that all special terms, financing conditions, and upgrades are explicitly anchored in the purchase agreement and advising buyers not to let time-limited pressures dictate major financial decisions.
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