- The real estate business market is maintaining its strength, and in the last half there has been an increase in demand from end users for leasing offices, industry and logistics throughout the country.
- The office industry in Israel continues to show stability in most areas, both in terms of high occupancy levels and in terms of maintaining the desired price level.
We expect a decrease in prices for office spaces in the next half year in the Tel Aviv area, following the introduction of new supply. In contrast, in the peripheral suburbs of Tel Aviv, in areas such as Jerusalem, Beer Sheva and Haifa, moderate price increases are expected due to the lack of new construction.
- In the industrial and logistics market, we expect a continued increase in rental prices, following a moderate increase in the prices of land intended for construction, alongside an increase in demand for industrial and logistics areas following the logistic efficiency of companies.
- Yields on income-producing real estate fell to 6.5% -7.5% for office, industrial and commercial properties, and private investors are looking to expand their portfolio to business real estate at the expense of residential investment.
Data from the report
First half 2017
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