Israel Real Estate Buyers Guide :
Choosing your property location
A practical starting point for understanding the Israeli market
is from the perspective of the various location and site alternatives
which the market presents to the investor and user.
Commercial real estate in Israel is typically found in one of two
types of locations, either center city “central business district”
locations, or in outlying industrial areas which function much as
suburban office parks. The two sources of property serve different
purposes and markets.
Center city locations, such as those in Tel Aviv, Jerusalem, and
Haifa, cater to financial and service businesses, professional services,
media and government offices.
In addition, most retailing has historically been concentrated
within the city and town centers, although the past decade has witnessed
an increasingly dominant trend of construction of shopping centers
and strip malls on the outskirts of the urban areas, adjacent to
major highway and road development.
Industrial areas, located on the outskirts of Israel’s cities and
towns, house a mix of uses, primarily high technology, manufacturing,
and warehousing tenants. These industrial areas have also been the
site of much of the recent growth in retail development. In recent
years, these areas have begun to take many of the characteristics
of suburban office parks, albeit with a higher concentration of
development as is typical in Israel.
Computer, electronics, and other high technology firms, whether
engaged in development or in actual manufacturing, generally seek
locations in the industrial and suburban areas, with a preference
for industrial areas where other similar companies are concentrated,
or separate industrial or suburban office park developments.
This overall trend of office, industrial, and commercial development
outside the urban centers coincides with the rising level of automobile
ownership and subsequent increased mobility of the country’s population
and the trend of private home construction and suburbanization.
Deveopment area's : As part of the government’s
ongoing efforts to encourage industrial development, particulary
in small towns outside of the center of the country, the Ministry
of Trade and Industry administers development grants and tax incentives
for creation of industry in these areas. In addition, companies
seeking land in these areas may apply and receive site allocations
at subsidized prices for construction of factories.
