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Israel goes mainstream

Israel goes mainstream

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Asia Pacific Flex Market Snapshot 2020 background
Asia Pacific Flex Market Snapshot 2020
The Instant Group has released its latest research report on the Asia- Pacific flexible workspace industry.
Wednesday, 29 May, 2019

The Instant Group has interrogated the growth in the Israeli market in our latest report.

The Instant Group witnessed an impressive growth in demand across the Israeli market throughout 2018, with different types of company profiles, and a range of requirements poured in demonstrating just how much the market has evolved.

Demand for flexible space in Israel, via the Instant Offices platform, doubled year on year in 2018 with interest growing in new markets such as Herzliya and Ramat-Gan, alongside the more established markets of Tel Aviv, Jerusalem and Haifa.

Corporate demand is spiking
Instant’s data shows that whilst the market is still relatively small, albeit growing at considerable pace, that deals increased by 100% in 2018, compared to 12 months prior, with a higher 10+ desk requirement than any other market.

While global tech companies including Amazon, and Facebook have been responsible for the growth in take up across Israel, it is the expansion of several flex operators that have dominated the occupancy of the 500,000 sq m of additional office space.

Where is the spotlight shining?
The market in Tel Aviv continues to out-perform the wider country, with nearly 100% occupancy reported, and prices rose in 2017 by 4.4% despite predictions of a decline.

Though despite this, in comparison to London, New York or San Francisco, the overall costs are much lower, even in Tel Aviv, for both office space and talent, which combined with the high volume of graduates and talented workforce is making Israel increasingly popular for tech companies in particular.

What’s next?
If the market continues to develop in a similar way to more mature markets, we can expect to see the variety of companies using the space evolve alongside the quality of space on offer, further driving demand for this high growth area of the CRE industry.

The market in Israel continues to remain a strong market for flex space, and we predict that the interest in Tel Aviv is likely to spread to other areas within Israel.

Read the full Israel report HERE

Download the full report below


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