Office real estate (photo pngwing)
The rental prices for offices in the peripheral cities continue to move away from those in the employment centers in Israel – this is according to the analysis of the rental data for offices at the Class A level for the years 2021-2022.
The price levels in Israel’s “high-tech capitals” in Tel Aviv, in the stock exchange in Ramat Gan and in Herzliya, climb to a level of NIS 102-135 per square meter per month, compared to price levels of NIS 73-88 per square meter in the periphery. In relation to the opening figures of 2018 2021, it is about increasing the gap in prices by an average of 31%, in a period of only two years.
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The report was compiled by Gil Me’in, partner and VP of business development, and Lor Byron Real Estate, which specializes in the renewal of old industrial and commercial areas in Israel. The analysis is based on data published by Natam Newmark and Inter Israel C&W.
The analysis also shows that the year 2021 began with a storm of price increases with the decline of the Corona epidemic, and continued until the end of the first half of 2022, mainly in the areas of demand for high-tech beers in Israel. In the second half of 2022, in light of the global scenarios of interest rate increases and the war in Ukraine, a reversal of the trend of moderate price decreases in the demand areas of 2-3% is evident, and adequate price increases in the periphery, some even at double-digit rates, such as in Haifa – 13% and Be’er Sheva – 11.5% .
The highest price increases between the years 2021-2022 are the stock exchange in Ramat Gan – 31.9%, and Tel Aviv – 29.8%. In the periphery, Haifa closes the gaps compared to the central cities, surprising with a cumulative increase of 21.9%.
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