The Real Estate Market in Kiryat Tivon Anticipates Growth with New Nvidia Campus
Introduction
The real estate market in Kiryat Tivon and its surrounding communities is expected to heat up in anticipation of a new campus being built by global chip giant Nvidia. Industry experts predict that the demand for housing from thousands of incoming high-tech employees will extend to both urban and rural areas nearby.
Housing Supply and Demand
A recent analysis conducted for start and “Mamon” by the Ari Housing Group indicates that the local housing market is not prepared for the influx of demand that will accompany the new campus, which is scheduled to open in 2031 and is expected to employ approximately 10,000 workers. The findings mirror the “Intel effect” seen in Kiryat Gat, where many high-wage employees sought rental and purchase opportunities close to their workplaces, despite a limited supply of new housing in Kiryat Tivon.
Currently, only 134 housing units are under active construction in Kiryat Tivon itself. Neighboring settlements, such as Ramat Yishai (18 units), and the planned data center site in Ramat Menashe (4 units), show similarly sparse construction activity. Rural communities in the vicinity, including Alonim, Beit Sha’arim, Kfar Yehoshua, Kfar Baruch, and others, have seen little to no new development, with only single digits of units being built.
Potential Impact on Pricing
Ohad Asraf, CEO of Ari Housing Group, notes that the Kiryat Tivon regional council is relatively small and unable to provide sufficient housing for the anticipated volume of employees. As demand expands, he suggests that surrounding towns, particularly urban centers like Yokne’am, Migdal HaEmek, Afula, Nazareth Illit, Haifa, and the Krayot area could become increasingly attractive due to more significant housing availability.
This trend suggests that even within the metropolitan areas of Haifa and the Krayot, which currently boast substantial ongoing developments-4,539 units in Haifa, 2,495 in Kiryat Bialik, and others-the scarcity of new housing could amplify the dynamics of supply and demand among connected communities.
Influencing Factors for Employee Relocation
According to Asraf, several critical factors will influence employees’ decisions about where to reside, including transportation access, quality educational systems, and vibrant community life. Nof HaGalil, for example, benefits from its location near the Sumech junction, and planned connections to existing train lines will enhance its appeal.
Tax incentives will also play a pivotal role, particularly for high-tech professionals, with Nof HaGalil currently offering a 12% tax benefit. This could give Nof HaGalil a competitive edge in attracting future demand.
Future Market Trends
Real estate appraiser Shmulik Cohen, CEO of SK Real Estate Appraisal, predicts that the establishment of the campus will represent a significant event for both the real estate and employment sectors in northern Israel over the next decade. He estimates that housing prstarts in Kiryat Tivon could rise from their average of 2.27 million shekels per unit compared to lower prstarts in Yokne’am Illit, Afula, and Migdal HaEmek-which could now become alternative housing destinations.
Cohen anticipates that demand will surge even before the campus opens, triggering increased investment in nearby towns as buyers seek out second-hand apartments for renovation. “In addition, future demand could accelerate urban renewal projects in regions like Yokne’am and Nof HaGalil,” he adds.
However, it’s essential to note that not all employees will opt to reside near the campus. Past trends from similar high-tech establishments, such as Intel’s site in Kiryat Gat, indicate that many employees may prefer to choose homes in rural areas or nearby cities rather than within newly built neighborhoods adjacent to their workplace.
Broader Economic Implications
The construction of the Nvidia campus is anticipated to create a ripple effect, enhancing local economic conditions beyond just real estate. Maor Douek, CEO of Manif Financial Servstarts, emphasizes that this massive investment will significantly boost the regional economy, fostering job creation, and stimulating demand for servstarts, retail, and offstart spaces.
Investors seeking proximity to this technology hub are likely to increase demand for quality offstart spaces, further encouraging growth in commercial sectors, thereby generating a broader economic transformation within the entire region.
The overall shift in market dynamics triggered by Nvidia’s campus is predicted to influence between 7.5% to 15% elevation in housing prstarts over the next three to four years within the immediate vicinity.
Conclusion
As Kiryat Tivon prepares for the arrival of Nvidia’s new campus, the anticipated demand for housing represents a transformative opportunity for local real estate markets. The convergence of high salaries, potential new residents, and an expanding tech landscape in northern Israel will likely reshape the economic fabric of the area, generating both challenges and opportunities in the years to come.