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Israel Real Estate Report 2017

Israel Real Estate Report 2017

BMI View:

Strong market fundamentals support a bullish outlook on the Israeli commercial propertysector. Supply issues are subsiding with the construction of new developments, while demand continues torise across the market against a positive economic backdrop. We expect rentals to keep steady across themarket over the mid-term, with potential for rate rises in the prime office and retail segments as a demandbias emerges.

The Israel economy witnessed strong GDP growth of 4.0% y-o-y in 2016 on the back of significantinvestment activity and strong fixed capital formation. Forecasts for 2017 suggest economic activity willease as investments slow, with real GDP growth reaching 3.5% by year-end. Nonetheless, fundamentalsremain strong. A rebound in private consumption and the implementation of favourable government policy -including tax breaks for the consumer and businesses coming over 2017 and 2018 - will provide thenecessary backdrop to maintain decent headline growth over the medium term. Investment potential ispositive and we expect growing demand for commercial real estate assets following a bright economicoutlook.


BMI Industry View
SWOT
Industry Forecast
Office Forecast
Table: Office Rental Rates, 2012-2017 (per square metre per month)
Table: Office Yields, 2012-2021 (%)
Retail Forecast
Table: Retail Rental Rates, 2012-2017 (per square metre per month)
Table: Retail Yields, 2012-2021 (%)
Industrial Forecast
Table: Industrial Rental Rates, 2012-2017 (per square metre per month)
Table: Industrial Yields, 2012-2021 (%)
Residential/NonResidential Building - Outlook And Overview
Table: Residential And Non-Residential Building Industry Data (Israel 2015-2025)
Table: Key Projects: Construction & Social Infrastructure
Macroeconomic Forecasts
Economic Analysis
Private Consumption Slowdown Will Not Last
Fixed Investment Easing As Extraordinary Circumstances Fade…
… But Long-Term Investment Story Still Positive
Brightening Outlook For Exporters, But Headwinds Still At Play
Industry Risk Reward Ratings
Industry Risk/Reward Index
Table: Middle East And Africa Real Estate Risk/Reward Index
Rewards
Risks
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (Israel 1990-2025)
Table: Key Population Ratios (Israel 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025)
Table: Population By Age Group (Israel 1990-2025)
Table: Population By Age Group % (Israel 1990-2025)
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

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