What Trump's Return Could Mean for Israeli Commercial Real Estate

Well, what a couple of weeks it's been for America! With Donald Trump set to make his return to the White House, let's talk about what this might mean for our corner of the world specifically, the Israeli commercial real estate market.

Based on what we saw during his previous term, the impact could be quite significant. Here's why I'm particularly intrigued.

Learning from the Past- During Trump's first term, we saw something fascinating - American companies that had never given Israel a second thought suddenly started knocking on our doors. Why? It was a perfect storm of low taxes, low interest rates, and strong U.S.-Israel relations creating opportunities too good to pass up. I believe we might see this play out again, especially in tech development centers and data centers.

The Interest Rate - Game Here's where it gets interesting. Trump, being a businessman at heart, has always pushed hard for low interest rates in the U.S. When U.S. rates drop, it creates a ripple effect worldwide. This could influence the Bank of Israel, potentially making commercial project financing more affordable. Suddenly, those deals that don't quite pencil out today might start looking attractive.

Business Ties - Remember how business relationships between our countries flourished during Trump's previous term? This wasn't just political talk - I saw firsthand how American investors started viewing Israel as a serious investment destination. There's every reason to think this could happen again, possibly even more intensely.

The America First Factor- Now, you might wonder how Trump's "America First" policy fits into all this. While it might seem like it would discourage foreign investment, I've noticed something different. The special U.S.- Israel relationship actually makes our market more appealing to American investors looking for opportunities beyond their borders.

The Abraham Accords Effect- Trump's eagerness to expand the Abraham Accords (and perhaps win that Nobel Prize he's been eyeing) could mean significant resources flowing into our region. This is especially true regarding potential ties with Saudi Arabia under MBS's leadership.

The Bottom Line - Sometimes in commercial real estate, political shake-ups create unexpected opportunities. Of course, everything depends on the broader picture - global markets, geopolitics, ongoing conflicts, and how policies actually play out in practice.

One thing's crystal clear though - after Operation Iron Swords, the Israeli market needs to be ready to jump on opportunities as they arise.

I'm curious - what do you think? Which of these factors do you see making the biggest impact on our local market? Are you already seeing any signs?

Commercial real estate in Israel

Shemen Maniv Real Estate Ltd. purchased a yields industrial property in the Emek Hefer Industrial Park for approximately NIS 36.65 million.

Paz Retail and Energy Ltd. contracted with Nadav B. Logistics Ltd. and Egged Properties Ltd. in transactions for the sale of Paz's full rights in three different logistics properties, in exchange for a total of NIS 127 million.

Commercial real estate overseas

Brack Capital Properties NV has completed a deal for the sale of land in the city of Dusseldorf, Germany.

Skyline Investments Inc. signed an agreement for the sale of the Courtyard Tucson airport hotel, for a total price of approximately 14.9 million US dollars.

Real estate in the headlines

Ishers is in negotiations to sell a complex at the Bilo intersection to investors from abroad for NIS 420 million (The marker).

Kfar Qasim promotes a plan for the renewal of the employment area and the regulation of illegal construction (Calcalist).

Guy is sure: after the war ends there will be a "boom", and this is the sector that will be positively affected (Globes).