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Once the most expensive property in Israel, baroque palace gets 40% price cut

Russian billionaire’s luxury mansion in Caesarea has failed to sell for nearly two years

  • Caesarea mansion on sale with 42% reduction, October 2022 (via Sotheby International Realty)
    Caesarea mansion on sale with 42% reduction, October 2022 (via Sotheby International Realty)
  • Reception area in Valery Kogan's Caesarea mansion (via Sotheby International Realty)
    Reception area in Valery Kogan's Caesarea mansion (via Sotheby International Realty)
  • Bedroom in Valery Kogan's Caesarea mansion (via Sotheby International Realty)
    Bedroom in Valery Kogan's Caesarea mansion (via Sotheby International Realty)
  • Indoor pool at Valery Kogan's Caesarea mansion (via Sotheby International Realty)
    Indoor pool at Valery Kogan's Caesarea mansion (via Sotheby International Realty)
  • Living space in Valerie Kogan's Caesarea  mansion (via Sotheby International Realty)
    Living space in Valerie Kogan's Caesarea mansion (via Sotheby International Realty)

A luxury mansion that was at one time the most expensive property in Israel has seen 42% knocked off its asking price after failing to attract buyers.

The mansion, in the northern coastal city of Caesarea, first went on the market in 2020 for NIS 845 million ($259 million at the time, $240 million today). Today, the baroque-style palace is being offered by Israel Sotheby’s International Realty (through their agent Shelly Shmelzer) for a dramatically reduced $149,500,000 (NIS 526,010,518).

The palatial 7,000 square meters (75,347 square feet) residence stands on a plot of around 11 dunams (2.7 acres) near the sea, and was built by billionaire Valery Kogan, a reported ally of Russian President Vladimir Putin, who also co-owns Moscow’s Domodedovo Airport, one of four serving the Russian capital and among the largest.

The mansion was built in 2013 for a reported cost of $100 million in 2013. It boasts four bedrooms, seven bathrooms, a spa and gym, indoor and outdoor pools, a wine room, billiard hall, home cinema and other amenities.

The style of the residence is distinctive and not for those who prefer minimalism. The decor features 14-carat gold moldings and crystal throughout, worked-in details and somewhat overwhelming patterns, even in the kitchen.

The grand reception area features chandeliers and marble columns over a space measuring 230 square meters (2,475 square feet).

There is also an outdoor pool with stereo and TV screen, set in landscaped gardens with two fountains featuring Roman sculptures.

Kogan’s net worth has been put at $2.5 billion, although his fortune has likely been affected given the turmoil in Russia amid its ongoing war in Ukraine. Kogan reportedly began to sell off real estate assets in New York some time before the beginning of the war in Ukraine, though his name has not yet appeared on sanctions lists.

Among the properties marketed was a luxury condo in New York’s Plaza Hotel for $50 million. Kogan and his wife were also shopping around other properties in the city worth around $250 million, alongside real estate assets in other parts of the United States, according to a New York Post report.

In the fall of 2020, Kogan also put his Tel Aviv apartment up for sale for $65 million (NIS 220 million).

The original sale price of Kogan’s Caesaria residence broke all Israeli property records.

Following the price reduction to a “mere” $21,357 (NIS 75,144) per square meter of house, Kogan’s home falls way behind some recent sales in Tel Aviv – notably two-story penthouses in the David Promenade Residences, which sold over the summer at more than NIS 200,000 per square meter.

Elsewhere in Tel Aviv over the course of the last year, prices of NIS 130,000 to NIS 140,000 were achieved at The Residences at Mandarin Oriental Tel Aviv, next to what used to be the Dolphinarium.

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