Coronavirus in Israel: Rental prices fall by 11% since start of pandemic
In the fourth quarter there has been a slowdown in the decline in prices due to the optimism in the income-producing real estate industry and the capital market
By JERUSALEM POST STAFFReal estate market(photo credit: Courtesy)
Since the beginning of the coronavirus crisis, which began in the first quarter of 2020, office rental prices have fallen by as much as 11%, a CBRE Israel study found.In the fourth quarter there has been a slowdown in the decline in prices due to the optimism in the income-producing real estate industry and the capital market, thanks to the mass vaccine campaign in Israel.Jacky Mukmel, chairman of CBRE Israel, said that in the fourth quarter of 2020, rent for offices in Tel Aviv decreased by only 1% compared to 7% in the first three quarters of the year.In Herzliya and Ra’anana, there was no change in rental prices in the fourth quarter compared with a decrease of between 9% (in Herzliya) and 11% (in Ra’anana) in the first three quarters of 2020.“The office sector is experiencing a significant decrease in activity, which is characterized by uncertainty in the market, which has added to a slowdown and a decrease in prices, especially among users who are looking for subleases for their areas, and who are willing to make significant compromises,” he said.According to the study, rental prices in the commercial industry fell in 2020 in Tel Aviv by 15%, in Ramat Gan by 9% and in Herzliya by 7%.
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