In the north and the south of the country today you can find a wide and interesting supply of profitable properties, and this supply is expected to expand since most of the country’s land reserves are concentrated in these areas. Status report.
Yair Levy talks about the effect of price increases in the periphery and low interest rates in the economy on the viability of investing in income-generating assets
In recent years, there have been two notable trends in the real estate market: the first, the increase in property prices in the peripheral areas, a trend that is expected to intensify following the extension of Highway 6 to the north and south and the improvement of train traffic. And the second, an increase in demand for income-generating assets, thanks to the drop in interest rates and access to bank financing. In the north and the south of the country today you can find a wide and interesting supply of profitable properties, and this supply is expected to expand since most of the country’s land reserves are concentrated in these areas. On the demand side, more and more companies are choosing to move their core operations to these areas that have become more accessible, and to benefit from government incentives and a more diverse and modular selection of spaces and assets. And hence investing in profitable properties in “peripheral” areas is becoming more and more attractive. Investors who recognize opportunities in the periphery are expected to benefit from the continued rise in property prices, as the narrowing of economic disparities and the accessibility of transportation routes bring the periphery closer to the center of the country, turning Israel into a model of a city state, where the entire country is actually one city, and there is no real periphery. Of course, this is not a process that happens overnight, but we are definitely on our way there, happily!
