The Commercial Real Estate market in Israel has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Commercial Real Estate market in Israel have been shifting towards modern, well-designed and sustainable properties. Businesses are increasingly looking for office spaces that offer flexible layouts, state-of-the-art technology infrastructure, and amenities that promote employee well-being. This shift in preferences is driven by the need to attract and retain top talent, as well as the growing focus on environmental sustainability. Trends in the market indicate a growing demand for office spaces in prime locations, particularly in Tel Aviv. The city has emerged as a major tech hub, attracting both local and international companies. As a result, there has been a surge in demand for office spaces in Tel Aviv, leading to a rise in rental prices and property values. Additionally, there is a growing trend of co-working spaces, as startups and freelancers seek flexible and cost-effective working environments. Local special circumstances also contribute to the development of the Commercial Real Estate market in Israel. The country's strong innovation ecosystem, with a high concentration of tech startups and multinational corporations, has created a demand for office spaces that cater to the unique needs of these companies. Furthermore, the government's support for the tech sector through initiatives such as tax incentives and grants has attracted both domestic and foreign investors, driving further growth in the real estate market. Underlying macroeconomic factors have also played a role in the development of the Commercial Real Estate market in Israel. The country has experienced consistent economic growth, with a strong GDP and low unemployment rates. This has resulted in increased business activity and a need for more office spaces. Additionally, low interest rates and favorable financing conditions have made it easier for businesses to invest in real estate. In conclusion, the Commercial Real Estate market in Israel is experiencing growth due to customer preferences for modern and sustainable properties, trends such as the demand for prime office spaces and co-working environments, local special circumstances including the strong innovation ecosystem, and underlying macroeconomic factors such as economic growth and favorable financing conditions.
Data coverage:
Figures are based on value of commercial real estate.Modeling approach / Market size:
Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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