Cautious Optimism or Cause for Concern? Is Israel's High-Tech Train Still Running?

While this is technically a real estate post, here's my take: High-Tech = Real Estate. Period

2024 in Review

Venture capital investments have stabilized, albeit at lower levels than peak years. Global fundraising patterns mirror worldwide trends (with Sequoia significantly expanding its Israeli presence in 2024)

More exits (good news or bad? You decide), including massive acquisitions of Israeli companies by NVIDIA and Playtika

More IPOs too

And importantly international companies haven't significantly reduced their presence in Israel.

Investment flow is concentrating in two main areas: CYBER and DEFENSE TECH. Meanwhile, AI, mobile applications, e-commerce, and digital advertising are getting sidelined. (Ironic that among our many ministers, we still don't have the most crucial one - an AI Minister.)

The Human Capital Freeze-The previous decade saw steady 4% annual growth in tech talent through 2023. Now? We're seeing a dramatic drop in demand for non-technical roles: marketing, finance, product development. New talent inflow is declining, and salaries are trending downward.

Startup formation has plummeted from 1,467 to 732 in 2023

But here's the most concerning trend for our future: fewer Israelis are qualifying for technological matriculation.

The Big Picture It's not black or white - we're in shades of gray. But here's the thing: high-tech thrives on certainty. While we're at war and judicial reform debates keep resurfacing, stability remains elusive.

When high-tech generates over half of Israel's exports and 20% of GDP, shouldn't we treat it as a 'national asset'? Give it the attention it deserves? We need our own Iron Dome for tech - to protect and nurture it for the sake of Israel's economy and particularly the commercial real estate sector.

We urgently need a responsible adult to keep this engine running at full steam.

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Commercial real estate in Israel

The Manarev Group Ltd. entered into a sale agreement to a reality fund of half of its rights in the land in the Ashdod industrial area on which three complexes are built, in exchange for NIS 200 million, as well as a commitment by reality to pay additional future consideration for the currently unused construction rights on the land.

Menibim The New Heritage Fund Ltd. purchased a logistics property with an area of approximately 3,400 square meters in Aza'at Hebol Modi'in for 50 million NIS.

Commercial real estate overseas

Subsidiaries of Strawberry Fields Reit Limited entered into an agreement to purchase full ownership rights in 6 nursing homes totaling 354 beds, in the state of Kansas, USA, for $24 million.

A subsidiary of G City Ltd entered into an agreement for the sale of Shopping Center Flora in Prague, Czech Republic in exchange for approximately NIS 884 million.

Real estate in the headlines

George Horesh buys a plot of land to build rental housing near the Hebrew University in Givat Ram for NIS 124 million (Calcalist)

Timora will pay NIS 134 million for a shopping mall in the center of Kiryat Ata - and adapt it to the alarming environment (Calcalist)