Israel Market Outlook H1 2023

During the first half of 2023, the office market is showing effects of the vulnerability of the hi-tech sector – a reduction in investments in local companies and the transfer of money (company funds) outside of Israel, with the backdrop of the judicial reforms and the social crisis following these proposed reforms. The office market in Tel Aviv, favored by the leading hi-tech companies, is still not showing signs of widespread harm, but it is likely to suffer substantial difficulties in the upcoming period. We note a first indication of this downturn –Facebook left its offices in Azrieli Sarona building, vacating approximately 30 thousand sqm of office space.