18/02/2026
Our recent InterNews Office Market Review for H2 2025 is Live:
As 2026 begins, Israel’s economy enters the year with greater clarity than in prior periods, though uncertainty remains part of the backdrop. Inflation has moderated, employment remains tight, and financial conditions have largely stabilized, providing an even more positive, defined starting point for the year ahead.
Across the commercial real estate market, conditions in H2 2025 were uneven. Prime office locations in Tel Aviv continued to demonstrate strength, while secondary submarkets and peripheral locations experienced soft demand. At the same time, a substantial pipeline of planned office deliveries, particularly along the Ayalon highway corridor, is set to shape market dynamics in the coming years, creating distance between typical “Class A” assets and what we call the top-of-the-line “Premium A” assets.
Beyond the Central Business District, satellite office markets and major regional cities closed 2025 with limited pricing movement, reflecting cautious occupier behavior and a continued preference among technology companies for central and highly accessible locations. Industrial land prices similarly showed little change, with values holding at recent levels and only selective adjustments recorded.
This semiannual review examines these trends as they stood at the end of H2 2025, drawing on market data, transaction analysis, and on-the-ground insight across Israel’s commercial real estate landscape. As the market moves further into 2026, we hope this report provides useful context and perspective on the trends shaping the period ahead.
What you can you expect from this review:
1. The Two Faces of High-Tech: Prime Tel Aviv Thrives While Satellite Markets Soften
2. Flight to the Core: Tenants Trade Suburbs for Central Locations
3. The Ayalon Corridor’s 2027 Pipeline Redefines Office Supply
4. Macroeconomic View: Clarity Returns as Inflation Eases
Link in bio to read the full review (English).
