Key Takeaways
- The rise in interest rates has impacted the Israeli real estate market, causing a sharp drop in demand, particularly in the office leasing and investment sector.
- During 2022, and even more so this year, there has been a decline in investments in technology companies, many of which are forced to reduce costs and lay off employees. Consequently, demand for offices has dropped sharply, and in addition, there is an ever-growing supply of sublease office space by companies that are downsizing.
- In addition, there has been a slowdown in demand for investment and purchase transactions, as a result of the sharp rise in interest rates and the cost of financing.
- During the first half of 2023, a decline was recorded in the number of transactions in the industrial and development market, concurrently with an increase in the supply of land for sale, primarily on the part of developers who prefer to realize assets, against the background of the increasing financing costs.
