Tel Aviv, Ra'anana office rents worst hit by Covid

• Published date: 08 April 2021
• Date: 08 April 2021

Natam found that office rents per square meter in Ramat Hahayal and Ra'anana fell 8.8% in the second half of 2020 compared with the first half. Rents fell by 8.5% in the Ramat Diamond Exchange district and by 6.7% along Tel Aviv Yigal Alon Street in the heart of the city's office district. Rents fell 6% in Netanya-Poleg, 4.2% in City-Ramat Gan, 4% in Bnei Brak, 2.7% in Herzliya Pituah, 1% in Modi'in and near Ben Gurion airport, and just 0.8% in Kfar Saba and Hod Hasharon.

Natam VP real estate Or Ben Zvi Klein says that supply of income producing property is lower further away from the center, thus the lower fall in rents, and this is also the case in Jerusalem, Haifa and Beersheva.

"During coronavirus, Tel Aviv also lost its relative advantage of restaurants and cafes. They were closed and property owners became much more flexible on apartment rents, and we saw prices fall. In addition, the area continues to suffer from problems like jams and parking."

Ra'anana also suffered, Ben Zvi Klein adds because a lot of new office building came on to the market just before the Covid-19 crisis struck.

Despite...