Real estate giant's report proves: the public wants more long-term rental apartments
The public real estate company reports 100% occupancy in projects designated for long-term rental, and annual revenues of about 35 million shekels. Will its bet on Sde Dov also pay off?
In recent years, against the backdrop of the surge in apartment prices at the beginning of the decade and high interest rates, the long-term rental sector is being tested by real estate developers. When the interest rate is high, the rental market is not profitable: developers know they will record a yield of 2-3%, and even if it involves full index linkage, it is still better to invest the money elsewhere - and without risk.
In recent months, the interest rate has fallen and the long-term rental market is coming back to life. The Israel Land Authority is not marketing enough such land, even though the public demands more projects with long-term rental. The company 'Prashkovsky' has entered the field massively through the arm 'Prashkovsky Manivim' and subsidiaries - and now the scale of demand for its projects is becoming clear.
The spotlight is, of course, on northern Tel Aviv. 'Prashkovsky' won a huge tender from the Israel Land Authority in the Sde Dov complex, which includes rights to build 966 housing units for long-term rental. According to the tender conditions, 50% of the apartments will be allocated at a regulated rent for those eligible, and the rest will be rented at free market prices, with the company granted the right to sell up to 40% of the rights in the apartments to private parties. By the way, 'Prashkovsky' has not yet repaid part of the loan of about 157 million shekels it took for winning the project. It paid about 673 million shekels for the land, which means it is a relatively low leverage. The demand for rent in Sde Dov is expected to be high, unlike other neighborhoods where rental prices are actually falling.
Alongside the giant project in Tel Aviv, the best proof of the model's success is found in the projects occupied in the Shefela. In the project in West Ramle, which includes 241 housing units for rent for a period of at least 20 years, the company reports a full occupancy of 100%. All apartments in the project were rented out, and they generate annual rental income for the company of about 16.8 million shekels. An identical picture also emerges from the project in the Nofi Ben Shemen neighborhood in Lod, which includes 286 housing units for long-term rental for 15 years. The project was fully rented out and yields the company annual rental income of about 18.7 million shekels.
The portfolio of 'Prashkovsky' projects is expanding to other centers in the country. The company is promoting giant planning in the '1000' complex in Rishon LeZion for the construction of 1,050 housing units for rent (a quarter of them at a reduced price), alongside a dormitory and rental housing project in Rehovot, which includes receiving building permits for 515 housing units in the first phase and planning for expansion.
At the same time, foundation and excavation works are already in full swing in projects in Be'er Ya'akov (298 units) and in the Ganei A'zer complex in Ramat Gan (215 units). Also on the international front, the company presents profitable activity, as the Arnon property in the USA shows a high occupancy rate of 91% as of mid-2026, an average rent of 22.3 dollars per square meter, and an adjusted yield of 7%.
Did 'Prashkovsky' correctly identify the market trend? Beyond the stable cash flow from rental projects, the long-term rental model gives the company tremendous asset flexibility: at the end of the mandatory rental periods, which range from 15 to 20 years, the company will be entitled to sell the apartments on the free market at an updated value - which guarantees it, unless something unexpected happens in the market, a high potential for appreciation in the long term.
