Could it be? The key to profit lies in a cultural gap

“I'm just frustrated!” Moshe's voice boomed through the office; the gleaming glass walls in Petah Tikva couldn't contain his despair. “Our project in Bucharest, you see, just isn't moving. The local sales team, lovely people, incredibly professional, but they can't sell a single apartment at the price I'm asking. They keep saying the market isn't ready, the prices are too high, the Romanians just aren't willing to pay. It's driving me crazy!”

A slight smile crossed my lips. Moshe must have noticed it, because he went on: “And on the other hand, look at this miracle – here in Israel, the Israeli team is having a field day! The apartments are selling like hot cakes, at the price I'm asking and even more. I don't get it. How can there be such a dramatic gap? How can the same property, in the same location, be seen so differently by two markets?”

I nodded in understanding. Stories like this, about unbelievable gaps between local and international markets, are a developer's daily bread. But what if we discover that this gap isn't just an obstacle, but actually the real key to dizzying success?

“Let me tell you,” I said, my voice calm and confident. “This is exactly the point where accumulated experience comes in – not only as a real-estate developer myself, but also as a lawyer who has dived deep into these markets. What you're going through is a classic, almost perfect example of deep cultural gaps, completely opposite market expectations, and utterly different ways of making decisions between local buyers and international investors – in this case, Israeli investors.”

The Romanian dilemma: a home, not an asset

“Picture,” I continued, leaning forward a little, “the average Romanian. When he buys an apartment, he isn't just buying walls and a ceiling. He's buying a home. A place to live, to raise a family, to put down roots. He'll go into every single detail: where will the children go to school? How far is the nearest supermarket? Is there enough parking? He'll look closely at the condition of the building, the quality of construction, and even the developer's track record. He wants to know that this home, into which he'll put all his savings, will stand the test of time and give him the security and comfort he's looking for.”

“And most important of all,” I stressed, “he'll argue over every euro. It isn't just a question of saving money, it's a whole culture of negotiation. They're grateful for every improvement, every extra, but every item in the price is the subject of long, exhausting and sometimes tedious negotiation. They're wary 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 room for manoeuvre into the price from the start, and he expects – even welcomes – this negotiation. It's part of the routine, an inseparable part of the sales process.”

The Israeli mindset: an investment, not just a property

“The Israeli, on the other hand,” I explained, choosing my words carefully, “and especially those looking for investments abroad – isn't necessarily looking for a home to live in. He sees the apartment as a pure investment, an asset that generates a return, part of a diversified portfolio. He's looking at the horizon, seeing the long-term potential, the diversification of his portfolio, and a real opportunity to build significant wealth.”

“He understands there's physical distance, so he's looking for someone to do the ‘dirty work’ for him. He wants someone to carry out the most thorough checks for him – legal, financial and physical. He's willing to pay a higher price, sometimes even a significant premium, for complete peace of mind. He knows that an expert like us, who knows the legal and regulatory complexities of the target country and understands the development side in depth, will protect his money and let him do the deal with maximum confidence.”

“He doesn't want to deal with complicated local bureaucracy, with finding a reliable inspector, or with analysing the small print of a foreign contract. He wants someone to take care of it. Full stop. And perhaps the most important thing to understand is that for the price an Israeli pays for an apartment in your project in Bucharest, he couldn't even buy a second-hand apartment in Israel's periphery. And from what I know, your pricing, compared with similar apartments in the area where you're building, really is relatively high for the local market.”

The key to profit: selling peace of mind, not just square metres

“So,” I summed up, smiling with satisfaction, “when the Israeli team presents the project, it doesn't just talk about square metres, the number of rooms or the finishes. It talks about returns, about meteoric growth potential, about investment security, and about the enormous peace of mind that their professional support provides.”

“They stress the fact that the investor gets a comprehensive package of services – legal, financial and physical – which is irreplaceable when you come to invest in a foreign country. That's what the Israeli is looking for, and that's what he's willing to pay for. It isn't that the Romanians are ‘wrong’; they simply have completely different needs. This understanding, Moshe, is nothing short of a revolution in your ability to sell. It's the ability to turn your biggest challenge – the gaps in culture and expectations – into your most powerful lever for profitability.”

These words seemed to open up a completely new perspective for Moshe. Suddenly it looked as if he was taking in that the problem wasn't the project or the price itself, but the way it was presented to and perceived by different audiences. Understanding this difference, internalising it, and building a strategy tailored to each audience – that's the only way to succeed big in the international property market.

That evening I got a WhatsApp message from him, short but full of meaning: “I get it! What looks ‘expensive’ to a local buyer is seen as ‘safe and worthwhile’ by an Israeli investor who values professional, comprehensive support. Thank you. Now I understand. And it's going to change everything.”

This message, dear developers, isn't just one success story. It's a roadmap. It's proof that in our global world, understanding the person in front of you – not just his bank account, but his deepest motivations – is the real asset, the peace of mind that's worth millions.

So what is that “peace of mind” your clients are willing to pay a premium for? And how can you sell it in a way no one can resist?