Report: The hi-tech cooling has affected Tel Aviv’s office market

Outside Tel Aviv – Renovation and construction of new office towers had a profound effect on the market and price levels remained stable and even increased. According to the NTM report, in the employment areas close to Tel Aviv there was a trend of an increase in occupancy and a minor increase in office rental prices as well. Newmark Natam attributes this to the extensive activity that has taken place outside of Tel Aviv in the past two years in the development of employment areas and the construction of new office towers in a number of prominent locations such as Ra’anana, Kfar Saba, Rosh Ha’Ein (Netsaba City), Petah Tikva or Herzliya Pituach. According to the report, the second half of 2022 there will be an average increase of 3.16% in the rental price per square meter in the second district of Tel Aviv.