318 apartments approved for Tel Aviv's Carmel Market

Tel Aviv's Carmel Market will have an additional 318 apartments and an underground parking garage, as part of the renovation plan approved by the Tel Aviv Regional Planning and Building Commission today. The plan applies to a 74-dunam (18.5-acre) site that includes the Carmel Market, the Western Market, the Carmelit parking lot, part of the Conquerers Park, and lots owned by the Israel Land Authority.

The plan will renovate the Carmel Market, Tel Aviv's main outdoor market, and the Western Market, add residences, and create logistics anchors and open public spaces. It will regularize the market's statutory status, which will allow the issuing of building permits for the market's rehabilitation and renovation, replacement of old infrastructures, proper garbage removal, and other matters. The plan also establishes rules for stalls, light walls, the placement of street furniture, as well as parking and logistics. It also zones temporary lots for public needs of the Kerem Hatimanim and Kerem Israel neighborhoods. The plan sets building rights and instructions for areas that are currently blocked, to allow urban renewal projects that will include residences, hotels, offices, and commercial space.

Office rents in Tel-Aviv soared 16% last year

Tel-Aviv office rents recorded the second highest leap in Europe in 2011, according to the world's most comprehensive EMEA office market survey by CBRE real estate services company. Office rents in Tel-Aviv soared an average 16.07%; Moscow recorded the highest leap for the second consecutive year, with a 33.3% climb in rent prices per meter of office space.

Climbing office space rents coincide with the commercial real estate market estimate that Tel-Aviv, Israel's business metropolis, is heading for full occupancy within just three years. Owner of MAN Properties, CBRE's Israel representative, Jacky Mukmel said last week that "if you buy an office building today, you will have a tombstone of money". "The entire commercial real estate market is for sale and there is not one developer that will refuse a cash deal". Mukmel also said he does not know "who will be using all of the office towers that are planned to go up in Tel-Aviv in the near future. The Electra office building has been on the market for three years and marketing efforts are still underway".

According to CBRE's review, with the exception of several Eastern European and European capitals, office space rents in Europe remained static throughout 2011, while southern European markets such as Sophia and Belgrade declined. Furthermore, some markets such as Madrid, which remained static, are expecting declines in the upcoming year, claims CBRE.

Source Ynet