47 that an investor is paid for managing risks is visible in investment activities by Israeli investors when others avoid the market out of fear. The Israeli investor typically is still able to seize the opportunity in such situations.” Which are the real estate assets attracting the most interest? “We are seeing significant increase in the hospitality industry, particularly in the luxury sector and the extended stay sector,” Herrick’s Ben-Ari points out, adding: “we are seeing significant increase in the hospitality industry, particularly in the luxury sector and the extended stay sector. Luxury hotels are consistently sought after, but it’s no surprise to see brands such as Marriott and Hilton, as well as Airbnb, increasing their inventory of extended stay brands for a few converging reasons. Perhaps the most significant are the current economic realities – including a high-interest rate environment and significantly-reduced lending options – with these less costly assets allowing for reduced development costs for sponsors, even amid an economic slowdown. The continuation of “work from home” and “home away from home” trends make these properties more attractive to a broader swath of visitors. Reduced fees and development costs naturally lead to higher profitability for these developers and longer stays with more, albeit reduced, fees for the brands.” Prais of Asserson adds: “They should also consider their sector carefully too; the jury is still out on the ‘wfh’ question which means the office investment is no longer the solid mainstay of the commercial property market it once was. We see investors also increasingly buying with cash when they have available resources rather than relying on bank finance. Those relying on banks to funds their acquisitions are having to work harder to find satisfactory loan terms but with the support of a good finance broker this is possible. There has been a move away from the traditional office and retail investments with keener interest in the light industrial and logistics sectors. Residential acquisitions are also a very attractive sector as investors are able to negotiate healthy discounts from developers looking to quickly off-load stock in bulk. Returns are strong in the residential market as the rental market is buoyant as mortgages become less affordable for aspiring homeowners. Those looking at offices and retail are careful to consider those with add-value opportunities, such as options to add space through roof-top development. Specialist sectors continue to be strong such as care homes, hotels, affordable housing.”“Forward-thinking people, many Israeli investors are putting their money into alternative and potentially ‘safer’ assets,one of these being the living sector,” adds Gold, at Charles Russell Speechlys. He adds: “Demand for living assets, which includes student housing, co-living, multifamily, affordable housing and healthcare, has increased since the pandemic, as investors look for safe havens and stable
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