The research attached has covered Israeli investors who had invested in at least one property overseas during 2011. Which raises the question what type of investors in terms of budget spend have been asked. Its a big difference to ask 100.000 Euro investors who mainly invest in flats or 500.000 Euro investors who typically go for a multifamily residential. However the average expectation of the Israeli investor of at least 7% annual yield seems high if this excludes the capital gains, which typically doesn’t occur annually.
The research findings
The top investment destinations for investment are:
- New York City, US
- Berlin, Germany
- London, UK
- Barcelona, Spain
- Various islands, Greece
Berlin is perceived as under priced market, with high yields on rental properties. The robustness of the German economy in the lagging European economic environment was one of the top factor which have affected the choice. Direct flights and positive attitude toward Israelis have also encouraged investors to operate in this market.
New York City led the list due to strong belief that the US market in general and NYC in particular will continue to demonstrate strong demand for rental and commercial properties. The direct flights and lack of language barriers as well as the traditional good relationship between the countries were the top positive factors affected the choice. The multifamily residential market and university expansion, along with the The Technion and Cornell win in building a two-million square-foot applied science and engineering campus on Roosevelt Island, drew positive attitude toward investment in this market.
London is another popular market among the Israeli investors, with direct flights, strong business ties , familiarity with the market trends and the Olympic games were stated as the main reasons.
Barcelona is a relatively new destination for the Israeli real estate investor. The coastal city has become one of the most popular destinations, and has seen record-breaking numbers of incoming tourists from all over the world. Together with the price reductions due to the economic crisis, Barcelona offers great return on investment mainly through short term rentals on small apartments in the city center.
Unlike many European real estate investors, the Israeli investors demonstrate lower interest in purchasing leisure properties, but rather view real estate as a yield baring investment channel. The average expectation of the Israeli investor is at least 7% annual yield.
Residential and commercial properties are considered as the most interesting vertical investment opportunities. Focusing on urban centers is dominant across the board. The Israeli investor believes in cities and its ongoing tourist attraction to lower the perceived risk in investing abroad. With many uncertain factors involved in international investment, the fear of empty properties while maintenance costs continue to take its toll is the top investment barrier.
The research was conducted by TLV Expo, in order to study the motives, preferences and priorities of the Israeli investor when engaging in overseas real estate activities. The research has covered Israeli investors who had invested in at least one property overseas during 2011.
About TLV Expo
TLV Expo, held in Tel Aviv, Israel, is the premier event for international real estate aimed at Israeli investors. The event focuses on networking with the leading Israeli investors, presenting investment opportunities around the globe and delivering valuable content.
Dozens of exhibitors and speakers are taking part in TLV Expo, providing them with smart reach and positioning in front of the Israeli audience. The Israeli investor is very business oriented, making TLV Expo an ideal platform for yield baring offerings in the retail, office and residential properties sectors.
TLV Expo participants are arriving from the various sectors of the real estate industry: corporate and private investors, fund managers, high net-worth individuals, project developers and managers, consultants and agents.
The event is accompanied by a two day conference program covering current trends and shifts in the real estate investment markets, providing added value and thought leadership talks to the audience.