Report | Intelligent Investment
Israel Real Estate Market Outlook 2022
July 6, 2023 30 Minute Read
The year 2022 will be remembered as a challenging period marked by significant declines in global markets, particularly in the Israeli market. The primary cause of this downturn was the substantial increase in inflation rates, which prompted central banks worldwide, including the Bank of Israel, to implement a policy of aggressive interest rate hikes.
The high-tech industry, a significant contributor to the local economy, is also experiencing a decline in capital raising and extensive layoffs due to efficiency efforts. Despite these challenges, there were some positive trends, such as record construction starts in the logistics sector, an increase in retail property revenues, and general stability in occupancy rates in the commercial real estate industry.
Despite the challenges faced in 2022 and the anticipation that they will persist into the following year, we remain optimistic that the Israeli economy will successfully overcome these obstacles.