“I'm just frustrated!” Moshe's voice boomed through the office, and the gleaming glass walls in Petah Tikva could not contain the despair in it. “Our project in Bucharest, you see, just isn't moving. The local sales team, nice people, wonderfully professional, but they can't sell a single apartment at the price I'm asking. They keep claiming the market isn't ripe, that prices are too high, that Romanians simply aren't ready to pay. It's driving me crazy!”
A faint smile hovered on my lips; Moshe apparently noticed it and continued, “and on the other hand, look at the wonder - here in Israel, the Israeli team is simply celebrating! The apartments are snapped up like hot rolls, at the price I demand and even more. I don't understand it, how can there be such a dramatic gap? How is it possible that the same property, in the same location, is perceived so differently by two markets?”
I nodded in understanding. Stories like this, about unimaginable gaps between local and international markets, are the bread and butter of developers. But what if we discovered that this gap is not only an obstacle, but in fact the real key to dizzying success?
“Let me tell you,” I said, my voice calm and full of confidence, “this is exactly the point where experience accumulates - not only as a real estate developer myself, but also as a lawyer who has dived deep into these markets - comes into the picture. What you are experiencing is a classic, almost perfect example of deep cultural gaps, completely opposing market expectations, and fundamentally different decision-making patterns between local investors and international investors - in this case, Israeli investors.”
The Romanian dilemma: a home, not a property
“Imagine,” I continued, leaning slightly forward, “the average Romanian. When he buys an apartment, he is not buying just walls and a ceiling. He is buying a home. A place to live in, to raise a family in, to put down roots in. He will go over every single detail: where will the kids study? How far is the nearest supermarket? Is there enough parking? He will thoroughly investigate the condition of the building, the quality of construction, and even the developer's experience. He wants to know that this home, in which he will invest all his savings, will stand the test of time and provide the security and comfort he is looking for.”
“And most important of all,” I emphasized, “he will argue over every euro. It's not only a question of saving, it's an entire culture of negotiation. They are grateful for every improvement, every addition, but every item in the price is the subject of long, exhausting, and sometimes tedious negotiation. They are afraid of taking risks, they want certainty, and any small deviation from the accepted norm will make them back off. The local seller, by the way, is used to this. He builds a margin for maneuver into the price in advance, and he expects - and even welcomes - this negotiation. It's part of the routine, an integral part of the sales process.”
The Israeli mentality: an investment, not just a property
“The Israeli, by contrast,” I explained, my voice full of nuance, “and especially those looking for investments abroad - they are not necessarily looking for a home to live in. They see the apartment as a pure investment, as an asset that generates a yield, as part of a diversified investment portfolio. They look to the horizon, see the long-term potential, the diversification of their investment portfolio, and the real opportunity to create significant wealth.”
“They understand there is physical distance, and so they look for someone to do the 'dirty work' for them. They want someone to carry out the most comprehensive checks for them - legal, financial and physical. They are willing to pay a higher price, sometimes even a significant premium, for total peace of mind.”
“They don't want to deal with complicated local bureaucracy, with finding a reliable inspector, or with analyzing the fine print of a foreign contract. They want someone to take care of it. Period. And perhaps the most important thing to understand is that at the price at which an Israeli buys an apartment in your project in Bucharest, he wouldn't be able to buy even a second-hand apartment in the periphery in Israel. And from what I know, your pricing, relative to similar apartments in the area where you are building, is indeed relatively high for the local market.”
The key to profit: selling peace of mind, not just square meters
“And so,” I concluded, smiling with satisfaction, “when the Israeli team presents the project, it doesn't talk only about square meters, the number of rooms or the finishing materials. It talks about yield, about meteoric appreciation potential, about investment security, and about the enormous peace of mind that their professional accompaniment provides.”
“They emphasize the fact that the investor receives a comprehensive package of services - legal, financial and physical - that has no substitute when you come to invest in a foreign country. That is what the Israeli is looking for, and that is what he is willing to pay for. It's not that the Romanians are 'wrong,' they simply have completely different needs. This understanding, Moshe, is nothing less than a revolution in your ability to sell. It's the ability to turn your biggest challenge - the gaps in culture and expectations - into the greatest lever for profitability.”
These words apparently opened a completely new perspective for Moshe. Suddenly it seemed as though he was internalizing that the problem is not in the project or in the price itself, but in the way it is presented and perceived by different target audiences. Understanding this difference, internalizing it, and creating a strategy suited to each target audience - this is the only way to succeed big in the international real estate market.
In the evening I received a WhatsApp message from him, short but full of meaning: “I got it! What looks 'expensive' to me for a local buyer is perceived as 'safe and worthwhile' by an Israeli investor who values professional and comprehensive accompaniment. Thank you. Now I understand. And this is going to change everything.”
This message, dear developers, is not just one success story. It is a roadmap. It is proof that in our global world, understanding the person across from you - not only his bank account, but his deepest motivations - is the real asset, the peace of mind worth millions.
So what is this “peace of mind” that your customers are willing to pay a premium for? And how can you sell it in a way no one can resist?
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית