“At least half of the Wiz bonuses will flow into the housing market”—will Google’s $32B buyout fuel a real estate frenzy?
Developers are banking on a wave of high-tech millionaires entering the market.
Real estate developers are hopeful that a significant portion of the substantial bonuses awarded to Wiz’s 1,800 employees as part of Google $32 billion acquisition will flow into the industry. If this scenario materializes, it could be considered almost a miracle for the industry, given the sluggish pace of sales.
The year 2024 ended with approximately 100,000 apartment transactions—an increase compared to 2023, which was impacted by rising interest rates and, most notably, the October 7 massacre. However, this figure remains 6.4% lower than the transaction volume in 2022 and represents a sharp 33% decline from 2021, when 151,000 transactions were recorded.
Hopes pinned on the high-tech sector are not without basis. For example, the sharp increase in state revenues from real estate taxes between 2021 and 2023 has been attributed, in part, to the tech boom of 2020–2021. Studies from the U.S. also highlight the "Silicon Valley effect," which demonstrates a correlation between economic activity in the high-tech sector and trends in the real estate market.
Real estate transactions typically occur a few months after individuals receive liquidity, as they take time to plan their next steps and find suitable properties. Real estate appraiser Ohad Danos, former chairman of the Real Estate Appraisers Association in Israel, told Calcalist that “it is likely that at least half of the employees’ bonuses will flow into the housing market and help stimulate it.”
Nuri Rachamim, managing partner at the Tel Aviv brokerage firm Rozio Properties, noted that in recent years, due to the high-tech boom, “a significant segment of young professionals around the age of 30 has emerged, purchasing luxury apartments priced between 7–8 million shekels. Even without an exit, young high-tech couples earn well and typically seek 4–5-room apartments in new projects in Tel Aviv’s old and new north (districts 3–4), in Neve Tzedek, or in central Tel Aviv, at an average price of about 10 million shekels.”
From his experience, company founders who have exited are often not satisfied with just one property. “I recently worked with a client, a young entrepreneur who sold his company and is planning to build an extravagant mansion in the Sharon region. Since the planning and construction process will take 3–4 years, he purchased a massive apartment in a boutique project in Tel Aviv in the meantime, fully aware that he would only live in it for a few years.”
However, this optimistic outlook is overshadowed by political uncertainty. The ongoing judicial overhaul has cast a cloud over investor confidence, particularly within the tech industry, where many figures are involved in the protest movement. A senior executive at a leading tech company, who has himself previously experienced an exit, told Calcalist in response to whether a surge in real estate transactions is expected: “The political and security situation is dampening enthusiasm for buying property in Israel. It’s likely that Wiz employees will also consider investing in foreign markets.”
