Office tower parking prices rise in Tel Aviv as rents fall

• Published date: 13 September 2023

The most glaring example of this was a 30% rise in parking prices in Tel Aviv's Ramat Hahayal district over the past three years, although this is far from the Red Line

The average rent for a parking space in a Grade A office tower in Tel Aviv in the first half of this year reached NIS 1,118 per month, up 3% compared with the first half of last year and 5% up from the first half of 2020. While office rental prices have decreased 11% compared with 2022, and increased by about 20% compared with 2020 (the year of the Covid pandemic, which was a low year for office rents).

In the first half of 2023, office tenants in Tel Aviv knew that the light rail Red Line was due to start operating in the second half of the year, so in many places in the city the parking prices should in theory have decreased. However, the reality is a little more complex.

"The Red Line is only relevant to workers who come from Petah Tikva or from Bat Yam. It is not relevant for those who come from Herzliya, for example. For the light rail to have a greater effect, we must wait for the Green Line," says Newmark Natam VP real...