Israel’s Real Estate Market in 2026: Navigating Uncertainty Through Smart Management

Transcript

Narrator: Welcome to the Talking IFM podcast, where we explore the diverse and evolving worlds of Integrated Facility Management (IFM). Together with industry experts, we will examine different aspects of the field, understand how they support organizations, discuss the challenges ahead, and discover what the future holds for IFM.

Idit: The Israeli real estate market is experiencing a period of profound change. This is not a single, clearly defined shift, but rather a new reality that requires a different way of thinking. There is greater complexity, greater caution, and fewer automatic decisions. Today, developers, property owners, and clients are no longer asking only where to invest. They are asking how to manage their assets over the long term, how to maintain stability, how to create value, and how to make informed decisions even in times of uncertainty.

I am Idit Shani, VP Strategy & Business Development at Electra FM, and joining me today is Mira Mines, CEO of Ariel Properties. Ariel Properties is Israel’s leading property management company, having shaped the Property Management category in Israel. The company operates across a wide range of segments and manages a diverse portfolio of assets.

Idit: Hi, Mira.

Mira: Hi, Idit.

Idit: Ariel Properties operates at the heart of a highly dynamic market. When you look ahead toward the Israeli real estate market in 2027, what do you think requires a different management approach from what we were accustomed to in the past?

Mira: I think it has become very clear that when we talk about property management today, we can no longer focus solely on the building itself, its physical infrastructure, electromechanical systems, walls, lobbies, and similar elements. These are, of course, extremely important and form the foundation of excellent property management and safety.

However, today we also focus on the people who interact with the property: the developers, the tenants who come to work there every day, and the visitors who arrive for meetings, shopping, or to spend time in mixed-use developments. We look at these people and ask ourselves how they should feel when they arrive at the property.

Idit: That makes perfect sense. If we unpack that idea, it represents a significant shift in perspective. Many organizations still talk about traditional property management, but in practice they focus primarily on maintenance and operations.

Mira: That's absolutely true. The traditional focus on maintenance and operations remains important, but today we are talking about management that adapts itself to a constantly changing reality. In Israel, and around the world, conditions are constantly evolving. No two days are alike.

We need to manage day-to-day operations successfully while also being able to transition instantly from routine operations to emergency response. This is where Business Continuity Planning (BCP) becomes essential. Business continuity must be embedded in the way buildings are managed.

Idit: Have you actually had the opportunity to put those contingency plans into practice?

Mira: Yes. One example that comes to mind occurred during Operation Rising Lion. At one of our highly complex mixed-use sites in the heart of Tel Aviv, the area was impacted by a missile strike.

In that moment, our entire team, from field personnel and headquarters staff to maintenance, management, cleaning, and security teams, mobilized immediately. Not only did everyone show up, but each person knew exactly what their role was in an emergency situation, which differs significantly from their role during routine operations.

This enabled everything to function as a seamless, well-coordinated system, allowing us to provide a sense of security and stability to tenants, visitors, and developers even during a highly challenging situation.

Idit: That's remarkable. It goes far beyond maintenance and operations. It creates resilience. It allows organizations to maintain stability even when faced with sudden disruption.

In my conversations with developers and clients, I often hear concerns about the gap between planning and reality. Where do you encounter the biggest challenge?

Mira: The biggest challenge is understanding that the market is not merely changing. It has already changed. From my perspective, we are operating in a new reality.

This reality, which continues to evolve in real time, constantly creates new needs and new expectations. Sometimes we even find ourselves looking ahead together with developers, identifying needs that tenants have not yet expressed but that we know will emerge in the future. We begin preparing for those needs in advance so that we are ready to provide solutions when the time comes.

Idit: It feels like we are constantly reinventing ourselves and developing new solutions for our clients.

Mira: Absolutely. That is exactly the reality we are operating in today.

Idit: I would like to pause on an important point. In my view, one of the key challenges we face today is creating unique value propositions for developers. And I say value propositions because they truly need to deliver value. They should not focus only on who manages the property as a management company, but on the experience the property creates for the people who use it. You mentioned both visitors and occupants. How do you see the role of the property management company in this context?

Mira: I believe the role of the property management company is central. We see ourselves as partners to developers, partners throughout the journey. A developer wants to create an environment where tenants are satisfied, where they want to stay, and where they can thrive. Today, achieving that goal depends heavily on the experience being created.

And when I talk about experience, I am not referring to marketing campaigns. I mean the day-to-day experience, the small details that shape how people feel: how they enter the building, what they experience when they arrive, how the space functions, how requests are handled, how a sense of stability and order is maintained, and sometimes even how unexpected events and experiences can create additional value.

This is one of the most interesting challenges in property management today.

Idit: That's fascinating because it means that value propositions are no longer just about a specific campaign or initiative. They are about the management experience itself. And from what you're describing, every value proposition is unique and tailored to the specific needs of each client.

Mira: Exactly. Different developers have different strategies, different priorities, and even different organizational DNA. The same can be said for individual properties and sites.

We build these value propositions together. We examine who the audience is, who works in the building every day, who visits the property, and what values the developer wants to communicate. This is a highly competitive environment. Properties that are managed with a deep understanding of the developer's values and the user experience are able to differentiate themselves over time.

Idit: Absolutely. It also creates a stronger connection because organizations can see their own identity reflected in the value proposition. I think that's extremely important, and it's something we see from our perspective at Electra FM as well.

When management is connected to the user experience, it directly influences customer satisfaction, people's connection to the space, and ultimately the economic value of the property. You mentioned that value propositions help developers attract tenants, but retaining tenants is becoming increasingly important as well.

Mira: That's right. Occupancy is not only important during the initial leasing phase of a property. It remains important throughout the entire lifecycle of the asset.

You continuously work on the experience of everyone who interacts with the property. When there is a long-term perspective, high-quality management becomes a competitive advantage. It is not only reflected in numbers and metrics. It is reflected in the overall feeling, in stability, and in the property's ability to continue performing successfully even as market conditions change.

Idit: Absolutely. Looking ahead to 2030, what should developers and property owners start doing today rather than waiting for tomorrow?

Mira: First of all, I am happy to say that some of them are already doing it.

Idit: That's true.

Mira: I believe the first step is choosing partners, not suppliers. They need true partners for the journey ahead.

I also believe they should invest in management that is involved from the earliest planning stages. Even when a project is still being conceptualized, it is important to bring management expertise into the conversation. This allows us to contribute additional perspectives that lead to better planning, stronger operational outcomes, greater connectivity, and a stronger sense of responsibility throughout the asset's lifecycle.

Most importantly, developers should build a clear value proposition that differentiates their property within an increasingly competitive and constantly evolving market.

Idit: That is very important, and I also liked what you said at the beginning: developers need to look for a partner. There is a significant difference between a supplier-client relationship and a true partnership.

Being partners throughout the journey creates value and competitive differentiation. You are part of the developer's journey, part of their challenges, building the most effective solution together, sharing the same interests, and facing the same challenges. This kind of partnership is undoubtedly priceless. It creates real value and is essential for a property management company.

Mira: I believe we are moving from suppliers to partners for the journey. That transition makes the real difference.

Idit: Absolutely. So, if we summarize the Israeli real estate market in 2026, we understand that it requires much more than ongoing management. It requires broad thinking, partnership, and the ability to create a stable and meaningful experience over time.

As you said, successful properties are those managed with a deep understanding of the market, the people, and the value they are intended to create.

Mira Mines, CEO of Ariel Properties, thank you for a meaningful, insightful, and highly relevant conversation.

Mira: Thank you very much, Idit.

Narrator: You have been listening to the Talking IFM podcast. We hope this episode has enriched your knowledge as part of our ongoing commitment to excellence, professionalism, and innovation. For more information, please visit our website.