Chips and Real Estate: An Unexpected Connection

In early 2025, the Biden administration announced new restrictions on AI chip exports, including to Israel. The policy divides countries into three tiers:

Tier 1: 18 countries including Canada, UK, Germany, and France - unrestricted access
Tier 2: About 150 countries, including Israel - requiring special U.S. Commerce Department approval
Tier 3: 25 countries including China, Russia, Iran, and North Korea - complete ban

For Israel, being in Tier 2 means potential delays or limitations on AI projects, particularly affecting data center development. While this policy aims to maintain U.S. technological supremacy over China, it creates significant challenges for Israeli tech companies.

The Israeli Defense Ministry has proactively purchased AI chips before restrictions take effect, but tech companies express serious concerns about business impact.

After five turbulent years, Israel's tech sector desperately needs stability. There's a direct correlation between tech growth and the success of our commercial real estate market - just look at all those new office towers waiting to light up.

Here's the irony: As the chip crisis adds another layer of uncertainty, many are looking to Trump's potential return to ease restrictions on U.S.-friendly nations like Israel.

Commercial real estate in Israel

A subsidiary of Mahadrin Ltd. entered into an agreement with a subsidiary of the Yuka Park Group to sell 40% of its rights in real estate in Netanya in exchange for NIS 82.4 million.

A subsidiary of Ayalon Insurance Company Ltd. entered into an agreement with L.R. Properties Ltd. to purchase its rights in two real estate properties: 1) an agreement to purchase 6 floors of offices, commercial space and a gallery as well as all the construction rights in connection with the land, without rights in the building's parking areas , in exchange for a total of 124.2 m NIS. 2) Agreement for the purchase of two basement floors in a building at 2 Hanegev Street in Tel Aviv, in exchange for a total of NIS 16m.

Commercial real estate overseas

A subsidiary of Midas Investments in Real Estate Ltd. entered into an agreement to purchase approximately 9.49% of the share capital of a company that owns an area of approximately 87 dunams in Washington DC, Maryland, USA, on which there is a one-story building that serves as a logistics center with a built-up area of approximately 47,000 Mr.

The Klein International Limited Group completed a transaction for the sale of the Fairless Hills property in Pennsylvania, USA, for $23.6 million.

Real estate in the headlines

Nvidia will build a huge data center with an area of 10,000 square meters (Calcalist)

Tuchmayer Rosen and Adam Neumann purchase land in Miami for 70.5 million dollars (Calcalist).