W
ar and soaring interest rates have not halted Israel’s real‑estate engine. Over the past two years, the market has closed deals worth hundreds of millions—sometimes billions—of shekels across housing, retail and office sectors, signalling a possible shift in dynamics. Income‑producing developers are expanding strategically, retailers are moving from tenants to owners, and large office leases are reshaping the landscape. Below is a concise overview of the most significant transactions and industry insights from the Hebrew year that just ended.
**Melisron’s Full Takeover of Aviv Initiation (Sept 2024)**
Melisron Group, led by Liora Ofer and Ophir Sarid, bought the remaining 50 % of Aviv Initiation from Doron Aviv and Dafna Harlev for 625 million shekels, valuing the company at 1.25 billion shekels. The firm now operates as Aviv Melisron, with a pipeline of roughly 4,700 planned housing units and an additional 5,000 in early stages. The move marks Melisron’s strategic entry into residential construction and urban renewal, broadening its core income‑producing portfolio.
**Azrieli’s Acquisition of Zemach Hammerman (Aug 2024)**
After protracted negotiations, Azrieli Group secured a 67 % stake in developer Zemach Hammerman for 870 million shekels, delisting the company from the Tel Aviv Stock Exchange. Zemach Hammerman, founded in 1997 and listed since 2007, has delivered over 11,000 residential units and 356,000 m² of commercial space. The purchase expands Azrieli’s footprint into residential development, complementing its malls and office towers and reinforcing its status as a leading real‑estate player.
**Mivne Real Estate’s Massive Coworking Lease (Sept 2024)**
CEO Uzi Levy’s Mivne signed a 500 million shekel, 11‑year lease with coworking firms ROOMS and Switchup from the Fattal Group. The contract covers 25,000 m² in a new 13‑story building and an adjacent tower on Yigal Alon Street, Tel Aviv, with 210 parking spaces. The tenants later expanded to 35,000 m², and annual rent plus management fees are projected at 45 million shekels during the first term.
**Rafael Advanced Defense Systems Office Purchase (Jun 2024)**
Defense contractor Rafael bought 16,000 m² of office space across six floors in the Hassan Arafa complex for 530 million shekels (≈30,000 shekels per m²). Sellers included Phoenix Insurance, Acro Real Estate and Yuvalim City Boy. Rafael, currently operating from Midtown Towers, plans to relocate to the new site in about five years. The deal positions Rafael as a strong, strategic buyer in the office market and enhances marketing prospects for the surrounding project.
**Check Point’s Long‑Term Lease (Mar 2025)**
Cybersecurity giant Check Point, under CEO Gil Shwed, partnered with Israel Canada to win a 49‑year lease for a 13.5‑dunam parcel in Bitzaron, Tel Aviv. Valued at 818 million shekels, the lease includes an option to extend. The 65,000 m² office campus will house Check Point, while two residential towers (35,000 m²) and 6,000 m² of retail space will be developed. This marks Check Point’s first real‑estate acquisition.
**IKEA Israel’s Netanya Purchase (Jul 2025)**
IKEA Israel, owned by the Fisher and Bronfman families, bought its Netanya site from Harel Insurance for 500 million shekels. The 17.4‑dunam plot and 35,000 m² store building were previously leased. Harel had acquired the property in 2012 for 289 million shekels and collected ~25 million shekels annually in rent. The purchase underscores IKEA’s shift toward owning strategic properties outright.
**Barak Capital Financing in Sde Dov (Aug 2025)**
Barak Capital Real Estate announced a 1.153 billion shekel credit framework for 203 rights holders in the Sde Dov redevelopment zone, north Tel Aviv. In partnership with Migdal Insurance, Menora Mivtachim and Amitim pension funds, the financing will fund 372 apartments, 66 hotel units and retail space on one of the country’s most sought‑after sites.
**Reality Real Estate Fund Sale (Jan 2025)**
Reality Real Estate Fund and partner Minrav sold a flagship site in Tel Aviv’s HaThiya complex to Yuvalim‑City Boy for 250 million shekels. The 25‑story tower will accommodate 186 apartments. An option to sell another 1.5‑dunam lot with 18,000 m² of commercial space for 110 million shekels was also signed. Reality had previously consolidated 10.5 dunams in the area, sold half to Minrav in 2021 for 187.5 million shekels, and now fully exited the project.
**Institutional Investments in Urban Renewal (2024‑25)**
- **Acro Real Estate & Phoenix Insurance (Jan 2025)**: Agreements for up to 410 million shekels, including 250 million earmarked for urban renewal.
- **Menora Mivtachim (Mar 2025)**: 200 million shekels across seven residential projects, totaling 1,440 units.
- **Clal Insurance (Jul 2025)**: Up to 250 million shekels for urban renewal, starting with 150 million across five approved developments in Rehovot, Ramla, Kfar Saba and Yavne.
- **Megurit (May 2025)**: 311.5 million shekels for 75 apartments in Ramat Gan’s Gafen Tower, yielding ~2.5 % annual income. Earlier, in March 2025, Megurit acquired 47 apartments in Tel Aviv’s HaSolelim project for 190 million shekels.
**Expert Commentary**
Erez Cohen, appraiser and attorney, noted that the market sits at a crossroads: income‑producing assets and residential projects both attract investor interest. He highlighted a decline in “virgin” land sales and fewer state tenders, with a focus shifting to proven, quality assets in strategic locations. Cohen anticipates more major deals in urban renewal and strategic assets, especially if global tech giants like NVIDIA enter the market.
Sarit Itzhakov, CEO of Colliers Israel, observed a clear office‑market recovery, especially in Tel Aviv, Petah Tikva and Ra’anana. Contracts signed this year cover 340,000 m² nationwide, 40 % in Tel Aviv—already surpassing last year’s total. Demand for an additional 200,000 m² remains unmet, largely from tech and finance firms returning to office work. Tel Aviv’s Azrieli–Sarona–Yigal Alon triangle remains the prime hub due to accessibility and modern offices.
Attorney Avraham Aberman, co‑managing partner at S. Friedman, Abramson & Co., emphasized market resilience amid political instability. While apartment sales slowed due to financing and high rates, price declines are expected to stabilize thanks to sustained demand. In the commercial sector, institutional and private players continue to pursue large deals, citing the IKEA‑Harel transaction as a textbook win‑win. He predicts that improved political conditions will benefit the entire industry, especially housing.
**Takeaway**
Despite the backdrop of war and high interest rates, Israel’s real‑estate sector has remained dynamic. Major players have executed billion‑shekel deals across residential, office, and retail segments, expanding portfolios, securing strategic assets, and reinforcing the market’s resilience. Institutional investment in urban renewal and the continued pursuit of high‑quality, strategic properties suggest a robust trajectory for the coming year.
