Israel has a reputation for having a strong and sustainable real estate market. Unfortunately, it also has the (well earned) reputation of being a very tough market to navigate.
Investing in Israeli commercial real estate can often provide gross returns approaching — and even exceeding — 10% per annum, with rent escalations further increasing the annual yield over time. However, the market is dominated by a handful of large, generally publicly traded, family-controlled companies that have taken on large amounts of debt, sometimes in excess of sustainable norms. This reduces the ability of those companies to provide their shareholders with superior dividend yields and, in certain circumstances, threatens their financial viability.
The residential real estate market is similarly dominated by a small handful of large developers. These developers effectively control and inflate market prices, thereby lowering rental yields on residential properties and making it very difficult for investors to earn an acceptable rate of return on their investment.
Individual investors have room to invest, but they need substantial patience and a professional team to assist them with navigating all the regulations and complex approval processes.
The goal of Habira Group is to make investing in Israeli real estate friendlier, simpler and more profitable. Our focus is on providing investors with an investment vehicle that is liquid, protects their capital, provides them with an annual return and minimizes the surprises that foreign investors in Israeli real estate often encounter.