Initial signs of recovery in the Israeli income-producing market in the first quarter of 2010 are pointing to better times ahead, according to a survey by MAN Properties Ltd., the Israeli representative of CB Richard Ellis.
Average office rent in key cities rose by 4% in the first quarter from the fourth quarter of 2009, due to a supply shortage and rising demand. Average office rent in Tel Aviv rose to NIS 82 per square meter from NIS 80 per square meter; in Ramat Gan, average office rent rose to NIS 69 per square meter from NIS 67 per square meter; in Herzliya it rose to NIS 68 per square meter from NIS 65 per square meter; and in Ra'anana, it rose to NIS 65 per square meter from NIS 60 per square meter.
Average office rent in Netanya was unchanged at NIS 44.57 per square meter, and it was also unchanged in Jerusalem and Rehovot at NIS 50 per square meter.
MAN Properties president and joint managing director Jacky Mukmel said, "The first quarter survey show that continuing optimism for the coming quarters, since no expects additional office space to reach the market anytime soon."
Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2010
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