ADVANCED MANUFACTURING

Real estate costs and availability

Real estate costs

The Development Areas Administration at the Ministry of Economy and Industry offers entrepreneurs and manufacturers an easy-to- use calculator of estimated costs for facility construction via subsidized land allocation. The calculator is destined to assist the preliminary calculation of most of the costs that are necessary for the construction of a factory or a workshop by entrepreneurs in National Priority Areas, as decided by the Israeli Government. For more detailed information and to access the calculator please visit goo.gl/7diQCk.

Real estate availability

Building and leasing availability: Israel has many industrial parks across the country. Some are hi-tech oriented while others encourage traditional or advanced industrial factories. The price range of the real estate varies by geographical location and the facilities offered.

Table 2 - General information of selected indusrtial parks in israel

Location

Region

Industrial Park

Distance to nearest sea port (km)

Distance to nearest train terminal (km)

Natural gas availability

Leading companies

Special Priority Region

Lot Availability

Karmiel

North

Karmiel Industrial Zone

27

**25

No*

SAP, Elbit, Opgal

Yes

Many

Tefen

North

Tefen Industrial Zone

30

*30

No*

Iscar, SanDisk

Yes

Many

Netanya

Center

EnterPark

55

13

No*

**

No

Many

Petah Tikva

Center

Kiryat - Arie

40

0

No*

Intel, IBM, Kodak, Oracle, Teva.

No

Few

Lod

Center

Lod Northern Industrial Zone

28

0

No*

Logisticare, Bank Leumi.

No

Few

Jerusalem

Jerusalem

Atarot Industrial Zone

50

10

No

Biolab (Food Safety), Municipallity of Jerusalem.

Yes

Many

Neot Hovav

South

Neot Hovav

80

0

Yes

ICL, Teva, Perrigo, Adama, Energix.

Yes

Unlimited

Omer

South

Omer Industrial Zone

75

5

Yes

Tefen, Vishay Precision Group, Medigus.

Yes

Few

 * Natural gas connectivity is planned for the future
** The park is currently under construction.

Infrastructure

Infrastructure

All utilities including electricity, natural gas (low pressure – up to 16 bar), fresh water and sewer infrastructure, Internet, railways, roads, etc., are fully available to both private and business sectors throughout Israel.

1. Electricity: Industrial factories in Israel can purchase electricity directly from the Israeli Electric Company (a State-owned company) or from one of the private manufacturers. Prices of electricity are set by the Electricity Authority and vary according to the type and time of consumption.

For more information on electricity costs please visit: https://goo.gl/Hv6jUe

Table 3 - Ultra-high voltage tariffs

Season

Price per KWh at peak Consumption time [NIS]

Price per KWh at medium Consumption time [NIS]

Price per KWh at low Consumption time [NIS]

Not including VAT

With VAT
(17%)

Not including VAT

With VAT
(17%)

Not including VAT

With VAT
(17%)

Summer (Jul-Aug)

0.0898

0.9979

0.3518

0.4239

0.2343

0.2824

Winter (Dec-Feb)

0.7596

0.9153

0.4517

0.5443

0.2609

0.3144

Spring and Autumn (Mar-Jun) (Sep-Nov)

0.3524

0.4246

0.2843

0.3426

0.2308

0.2781

Table 4 - High voltage tariffs

Season

Price per KWh at peak Consumption time [NIS]

Price per KWh at medium Consumption time [NIS]

Price per KWh at low Consumption time [NIS]

Not including VAT

With VAT (17%)

Not including VAT

With VAT (17%)

Not including VAT

With VAT (17%)

Summer (Jul-Aug)

0.089

0.1083

0.3923

0.4727

0.2637

0.3178

Winter (Dec-Feb)

0.813

0.9796

0.4842

0.5834

0.288

0.3471

Spring and Autumn (Mar-Jun) (Sep-Nov)

0.3859

0.465

0.3146

0.3791

0.256

0.3085

2. Natural gas: the natural gas distribution network is fed by the transmission system and delivers natural gas at low pressure (up to 16 bar), mainly to industrial parks and to small consumers.

• See current distribution map at: http://goo.gl/rceSJC.
• For additional information about the Israeli natural gas sector, see: http://goo.gl/ZFDFMS.

Table 5 - Natural gas tariffs by location and consumption

Tariff by annual consumption Annual 10K)cu.m)<

Very Small

Small

Medium

Large

Very Large

Very Large

<10K)cu.m)
annual 100K)cu.m)<

<100K)cu.m)
annual 1M)cu.m)<

<1M)cu.m)
annual 12M)cu.m)<

<12M)cu.m)
annual 25M)cu.m)<

<25M)cu.m) annual

  

*Price /NIS) (cu.m

North

0.1962

0.1962

0.1903

0.1902

0.0490

0.0054

Center

0.1649

0.1587

0.1397

0.1383

0.0459

0.0050

Jerusalem

0.4963

0.3474

0.2581

0.687

0.0496

0.0055

South

0.2225

0.1480

0.0554

0.1107

0.0465

0.0051

Price /$US) (cu.m

North

0.6802

0.6802

0.6597

0.6594

0.16988

0.1872

Center

0.5717

0.5502

0.4843

0.4794

0.1591

0.0173

Jerusalem

1.7206

1.2044

0.8948

2.3818

0.1719

0.0190

South

0.7714

0.5131

0.1920

0.3837

0.1612

0.0176

* Up-to-date as of January 1, 2018

 

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