T
he Israeli real estate market is poised to receive a significant boost from the tech industry, as developers anticipate that a substantial portion of the bonuses awarded to Wiz's 1,800 employees will flow into the sector. This influx of liquidity could be a game-changer for an industry still reeling from the sluggish sales pace of recent years.

    The numbers paint a mixed picture: while apartment transactions increased by 6% in 2024 compared to 2023, they remain 33% lower than the peak of 151,000 transactions recorded in 2021. However, studies have shown that there is a clear correlation between economic activity in the high-tech sector and trends in the real estate market.

    Real estate experts are optimistic about the potential impact of Wiz employees' bonuses on the market. "It's likely that at least half of the employees' bonuses will flow into the housing market," predicts Ohad Danos, a real estate appraiser and former chairman of the Real Estate Appraisers Association in Israel.

    The high-tech boom has already led to an increase in luxury apartment purchases by young professionals, with many opting for properties priced between 7-8 million shekels. Nuri Rachamim, managing partner at Rozio Properties, notes that these buyers often seek apartments in desirable locations such as Tel Aviv's old and new north, Neve Tzedek, or central Tel Aviv.

    However, the ongoing judicial overhaul has cast a shadow over investor confidence, particularly within the tech industry. A senior executive at a leading tech company warns that the political and security situation is dampening enthusiasm for buying property in Israel, with some Wiz employees potentially considering investing in foreign markets instead.