Despite all the measures taken by the government, the Israeli real estate market does not even think about cooling down. Due to the temporary introduction of three taxes on owning three or more objects and encouraging reinvestment of funds in securities, the share of foreign investors in the country has decreased.

According to the data for the second quarter of 2018 from the Israeli Ministry of Finance, their share has reached a historic minimum – only 3,200 housing units have been acquired, or 14% of the total volume of transactions. At the same time, the prices for square meters after a temporary recession began to slowly rise again. So, what are the most interesting objects for investment?

Office Space

In the central areas of large cities, there is a steady demand for small office space in new buildings. The high demand for offices is ensured by a steady shortage of vacant offers on the market, therefore, investments in this type of real estate are considered reliable and profitable both in the short and long term. It is most advantageous to acquire not separate offices, but large premises of 1000-2000 square meters in new buildings under construction. The cost per square meter here is € 1884-2147.

Next, divide the area into small offices of 20-50 “squares” and rent for € 14-17 per square meters per month. The annual yield of such real estate is about 8%. If you correctly use the financing options, that is, to use lending, you can reach a yield of 10-12% per annum on equity.

Small and Old Apartments in South Tel Aviv

Apartments in homes over 30 years old with an area of 50-80 square meters with one – three bedrooms are also good for investing. The cost of such apartments is always noticeably lower than similar options in newer homes in developed areas. At the same time, apartments are successfully rented and generate income of about 3% per annum. Prices for such housing are growing at about 3% per year.

But the main essence of the investment strategy is to wait for the house to decide to demolish or reconstruct. South Tel Aviv is actively restructuring and developing, so it is quite realistic to get under the local renovation program. When making such a decision on your home, the price of an apartment rises immediately by 20-50%.