Israeli businessmen, corporations, and institutional investors invested $2.293 billion in real estate abroad in 2022, reports JLL International Real Estate Consultants. That number is down just 5.7% from $2.433 billion in 2021 despite interest rates rising throughout the year. It remains unclear whether this level of investment can be sustained in 2023.
In 2020, the years of the Covid pandemic, Israelis invested $2.198 billion in real estate abroad, so investment has remained flat over the past three years. The peak of Israeli investment in real estate abroad over the past decade was in 2017 when $6.7 billion was invested.
JLL said: “In the past year, inflation and rising interest rates in the global and local economy led to signs of a slowdown in the global and local real estate market, and many investors began to reconsider their investment options. However, it seems that Israeli investors have not stopped investing in Real estate abroad.
Focus: industry, retail and hotels
Breaking down the data by sectors for 2022 presents an interesting picture: 33% of deals in real estate abroad for Israelis were in industrial real estate, 22% in retail, 17% in hotels and only 15% in residential real estate, while 13% were in Office real estate.
JLL explained that “Israeli investors prefer sectors that are experiencing growth. In addition, it seems that last year there was a good demand for investments in the office market, despite the decline in global demand. These are mainly deals in offices that are in demand, premium offices Located in the most sought after area, it is showing good performance.”
JLL found that in 2022, Israelis invested $1.311 billion in the EMEA region and just under $1 billion in the United States, similar to the amount invested in each region in 2021. Mor Ziv, director of investment at JLL Israel, said, “Israeli investors see the challenge of the period during which the real estate market is characterized as an excellent investment opportunity, while others face it as a global crisis. The American market, as an important destination for real estate investments, offers Israeli investors a variety of investment options along with strategic ties with strong local companies Partners.
Published by Globes, Israel business news – en.globes.co.il – on July 4, 2023.
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