Drive through · The south
Driving through Kiryat Gat
An industrial city with a very large employer, a station, and prices that draw investors from abroad in numbers. Filmed with the yield question interrogated rather than repeated.
What a Kiryat Gat drive actually shows you
Kiryat Gat appears on overseas investor lists more often than almost any city its size, on the strength of headline yields and a large industrial employer. Both are real, and neither is the whole picture.
The drive runs the older neighbourhoods and the newer quarters separately, and looks at the employment base directly, because a yield that depends on one employer is a different proposition from one that does not.
The older neighbourhoods
Where the cheapest stock is, and where condition varies enormously street to street.
The newer quarters
Recent construction with modern layouts, at a different price and with a different tenant profile.
The industrial park
The employment base, filmed at a working hour, because the rental market here rests on it.
Access
The station and the roads, which matter for both residents and the resale market.
The run through Kiryat Gat
One continuous pass across the city. Times are from the start of the film.
The older neighbourhoods 00:00
The cheapest stock, filmed honestly.
The centre 03:30
Everyday services at a normal hour.
The newer quarters 06:30
Recent construction, filmed slowly.
The current building edge 10:00
Where construction is live on the day of filming.
The industrial park 13:00
The employment base at a working hour.
Schools and parks 16:00
At the school run, so the traffic and distances are honest.
The station 18:30
The rail connection and its approach.
Out to Route 40 20:00
The exit at a real hour.
Every Kiryat Gat film we have
The full drive, the sections worth watching alone, and the commute test.
Kiryat Gat, end to end
Older neighbourhoods through to the newest construction.
The yield question
What the headline numbers leave out, walked through on the actual streets.
The industrial park at 09:00
The employment base at a working hour.
Old and new, back to back
Two quite different markets in one small city.
Kiryat Gat to Tel Aviv by rail
The train, filmed end to end.
Kiryat Gat to Beer Sheva
The southern run, clock on screen.
The one thing a drive through Kiryat Gat will not answer
Headline yields here look excellent, and a headline yield is a division sum, not an investment. It says nothing about void periods, management from abroad, the cost of repairs on older stock, or what happens to demand if one very large employer changes its plans.
Ask what the net figure is after management, maintenance, void allowance and tax, on the specific property, in a bad year rather than a good one. If the person quoting the yield cannot produce that, the number is marketing rather than analysis.
Kiryat Gat: questions from the footage
Why do investors look at Kiryat Gat?
Low entry prices, a large industrial employer supporting rental demand, and a railway station. The headline yields are consequently high.
Are the yields real?
The gross figures are arithmetic. The net position after management, maintenance, voids and tax is a different number, and it is the one that matters.
What is the risk?
Concentration. A rental market resting substantially on one very large employer behaves differently from a diversified one. That is not a reason to avoid it, but it should be priced.
Is there new construction?
Yes, substantial recent building, with modern layouts and a different tenant profile from the older neighbourhoods.
Is there an official average price?
No — it is not in the CBS eighteen-city series. We work from recorded transactions.
Can I manage a rental here from abroad?
You can, with local management, and the cost of that management belongs in your numbers from the start rather than as an afterthought.
The neighbouring drives
The neighbouring markets, filmed to the same standard.
Beer Sheva
South-east, the largest city in the Negev, and the other investor destination.
Drive throughAshkelon
West on the coast, with the sea and its own set of questions.
Drive throughAshdod
North-west, much larger, with the port and the marina.
Drive throughYavne
North, closer to the centre, with newer stock.
Seen the streets. Now the numbers.
The drive is one part of the Kiryat Gat file. The area profile, the quarterly market analysis, the current projects and the remote purchase guide are all filmed and written to the same standard.