TA-Real Estate Index

The TA-Real Estate Index is a Tel Aviv Stock Exchange equity index composed of shares classified in the real-estate sector that meet TASE index criteria. It is a sector benchmark for listed Israeli real-estate companies and is calculated as a gross total return index in real time during trading.^[1]

Overview

The TA-Real Estate Index is one of the sector indices maintained by the Tel Aviv Stock Exchange (TASE). Its index code is 149, its short name is TA-EST, its ISIN is IL00BIDX1493, its Bloomberg code is TA-REAL, and its Reuters RIC is .TELREAL.^[1] The index is designed to represent listed equities that TASE classifies under the real-estate sector and that satisfy the exchange’s eligibility rules.^[1]

As a sector index, the TA-Real Estate Index differs from broad market indices such as the TA-35 Index. A broad index is intended to summarize the performance of a wide segment of the market, while a sector index isolates a particular industry group. The TA-Real Estate Index therefore reflects a more concentrated exposure: listed companies whose main exchange classification is real estate, including property owners, developers, infrastructure-related real-estate issuers and other companies assigned to the real-estate sector under TASE classification rules.^[1]

The index is a “tracking index” according to TASE’s own description.^[1] In practice, this means it is suitable to serve as a benchmark for index-tracking investment products, performance comparison, market analysis and sector allocation. TASE’s index page lists dedicated exchange-traded funds that track the TA-Real Estate Index, showing that the index is used as an underlying benchmark for exchange-traded products in the Israeli market.^[3]

Index construction

TASE describes the index universe for the TA-Real Estate Index as the TAMAR equity universe, with classification limited to real estate and an additional requirement that a security be included in the Real Estate List.^[1] TASE also states that the domicile requirement is “Only Local Linked,” a category used in its index rules to connect eligible securities to Israel for purposes of domestic index inclusion.^[1]

The number of constituents is not bounded, which means the index is not constructed to hold a fixed number of shares such as 15, 35 or 125. Instead, any eligible share classified in the real-estate sector can be included if it satisfies the relevant criteria.^[1] This makes the index a broad sector benchmark rather than a top-company benchmark. At a TASE-reported composition date of 5 August 2026, the index composition page showed 100 records, illustrating the index’s broad sector coverage at that point in time.^[2]

The TA-Real Estate Index uses a 5% weight cap.^[1] A cap is a diversification rule that limits the effect of the largest companies on the index. Without a cap, the largest listed real-estate companies by adjusted market value could dominate index movements. A capped structure reduces single-issuer concentration and can cause weight to be redistributed among other eligible constituents. Because prices and free-float values change over time, a constituent’s live displayed weight can temporarily differ from the target cap between formal index adjustments; TASE’s composition page for 5 August 2026, for example, showed several large constituents with weights around 5%.^[2]

TASE reports that the index permits a fast track for new IPO or dual-listed shares.^[1] A fast-track provision allows newly listed companies that meet defined conditions to enter an index outside the ordinary semi-annual schedule. Such provisions are common in exchange index families because newly listed large companies can become important to a sector before the next routine review date.

Calculation and dissemination

The TA-Real Estate Index is calculated by TASE as a gross total return (GTR) index.^[1] A total return index differs from a price-only index because it incorporates distributions according to the index methodology rather than reflecting only share price changes. The “gross” form generally means returns are calculated before withholding-tax effects, although the precise treatment is governed by TASE’s methodology documents and corporate-action rules.

TASE disseminates the index in real time every 15 seconds during trading.^[1] This makes the index usable for intraday monitoring, trading screens, exchange-traded product pricing and market commentary. TASE also publishes end-of-day historical data. Its historical-data page for the TA-Real Estate Index includes fields such as index base price, opening price, closing index price, high, low and overall market capitalization.^[4]

The Bank of Israel explains stock-exchange indices in general as numerical data points representing the average price of securities belonging to a defined group relative to benchmark values set when the index was introduced. It also notes that index values vary with changes in constituent prices and with the weights of the securities in the index.^[5] That description is directly relevant to understanding the TA-Real Estate Index: daily changes reflect both the price changes of individual real-estate constituents and the weights assigned to those constituents under TASE methodology.

The Bank of Israel has also described TASE equity-index methodology as using constituent weights and price ratios to determine index changes. In its discussion of index-change attribution, it states that the contribution of each security can be expressed through its weight and its holding yield, so the total contribution of all securities equals the difference between index values over the period being measured.^[5] Applied to the TA-Real Estate Index, this means that a highly weighted real-estate share has a larger effect on the index than a smaller constituent with the same percentage price change.

Review schedule and rebalancing

TASE reviews the TA-Real Estate Index semi-annually, with review dates at the end of trading on the first Thursday in May and November.^[1] The free-float record dates are 31 March for the May update and 30 September for the November update.^[1] TASE also specifies an update record date at the end of trading on the Thursday three weeks before the index update and an update notice date at the end of trading on the Thursday two weeks before the update.^[1]

This schedule creates a predictable index-maintenance cycle. First, data such as free float and eligibility are measured on the relevant record dates. Then TASE announces expected changes before the effective update. Finally, index changes take effect according to the semi-annual schedule. Predictable index reviews are important because fund managers, market makers, issuers and analysts need advance information to implement changes or assess expected trading effects.

The Bank of Israel has noted more generally that inclusion in TASE equity indices is subject to threshold conditions set and updated by the exchange, including conditions related to public holdings, price, connection with Israel and tradability.^[5] While that discussion was made in the context of leading TASE indices, it reflects the broader institutional role of TASE in establishing index criteria and maintaining index composition. The TA-Real Estate Index’s own TASE page specifies the relevant sector, universe and review rules for this particular index.^[1]

History

The TA-Real Estate Index was launched on 2 January 2005.^[1] TASE states that its historical data on the exchange website also begin on 2 January 2005.^[1] The base value is 278.8, derived from the closing index price of the Real Estate & Construction Index on 31 December 2004.^[1]

The index’s current form reflects a later broadening. TASE states that the index was launched as TA-RealEstate15 and was broadened as of 9 February 2017.^[1] The former name indicates a narrower index structure, while the broadened version is consistent with the current rule that the number of constituents is not bounded.^[1] This change is significant because it moved the benchmark from a smaller group of real-estate shares toward a broader sector representation.

The 2017 broadening also affected how the index could be interpreted. A fixed-size index of 15 companies would be more heavily focused on the largest and most liquid companies, while an unbounded sector index can include a wider set of listed real-estate issuers. Broader coverage can improve representation of the sector, but it may also include smaller or less liquid companies, depending on the eligibility rules in force at each review.

Constituents and weights

TASE publishes the index’s constituent list and weights. On 5 August 2026, the TASE composition page showed 100 records and reported total index market capitalization of about NIS 298.066 billion for that date.^[2] The same page listed Alony Hetz, Shikun & Binui and Mivne among the largest constituents at that time, with displayed weights of about 5.27%, 5.27% and 5.14%, respectively.^[2]

The list of leading constituents can change as prices, free-float values, corporate actions and eligibility change. At another TASE composition view dated 10 September 2026, the most-active securities by turnover included Azrieli Group, Amot, Melisron, Mega Or and Alony Hetz, while the page reported overall index market capitalization of about NIS 302.512 billion for that date.^[6] These figures are point-in-time observations rather than permanent features of the index.

The index’s constituent breadth means it includes companies with different real-estate business models. Some companies own income-producing commercial property; some are involved in residential development; some hold assets outside Israel; and some combine real estate with construction or infrastructure activities. The index should therefore not be interpreted as a direct measure of Israeli residential property prices. It measures the listed equity performance of companies classified by TASE in the real-estate sector.

Uses in Israeli capital markets

The TA-Real Estate Index is used as a benchmark for Israeli listed real-estate equities. Analysts may compare the performance of a real-estate company against the index to assess whether its share price has outperformed or underperformed the sector. Asset managers may use the index as a benchmark for domestic sector allocation. Issuers may use index membership as a reference point for liquidity, visibility and market classification.

TASE’s index-tracking product page for the TA-Real Estate Index listed five exchange-traded funds as of 27 July 2026.^[3] The existence of such products makes the index relevant not only as a statistical measure but also as an investable benchmark. When an index is tracked by funds, changes in composition and weights can influence trading activity around rebalance dates because tracking products may need to adjust their holdings.

For investors and market observers, the index is also a way to follow the listed real-estate sector as a group. Real-estate equities can be sensitive to domestic interest rates, inflation expectations, construction costs, financing conditions, property demand, rental markets, regulation and macroeconomic cycles. In Israel, many property companies also issue corporate bonds, making the sector relevant to both equity and fixed-income markets. Those relationships are market characteristics rather than index rules, but they help explain why a dedicated real-estate equity index is widely followed.

Relationship to other Israeli indices

The TA-Real Estate Index sits within the broader TASE index family. Broad equity indices, such as the TA-35 Index, include companies across sectors. Sector indices, such as the TA-Real Estate Index and TA-Banks 5 Index, isolate a particular part of the market. This distinction is useful for sector rotation analysis, risk attribution and performance comparison.

The Bank of Israel has described the Tel Aviv 35 and Tel Aviv 125 as leading equity indices on the exchange, with the Tel Aviv 35 tracking 35 equities traded at the highest market value and the Tel Aviv 125 tracking 125 such equities.^[5] Real-estate and construction shares are among the industries represented in those broad indices, but their weights vary over time according to constituent inclusion and market value.^[5] The TA-Real Estate Index, by contrast, is entirely restricted to the real-estate sector under TASE classification rules.^[1]

The index is also distinct from bond indices that include debt issued by real-estate companies. The Bank of Israel’s analysis of Tel Bond indices shows that real-estate and construction bonds can be a major component of Israeli corporate-bond benchmarks and can contribute meaningfully to bond-index movements during stress periods.^[5] However, bond indices measure debt securities, while the TA-Real Estate Index measures equity shares. Equity and bond indices can react differently to the same economic event because they represent different claims on company cash flows.

Interpretation and limitations

The TA-Real Estate Index is an equity-market measure, not a real-estate price index. Its level is affected by share prices, dividends and index methodology. It does not directly measure apartment prices, commercial-property transaction values or rents. A rise or fall in the index may reflect expectations about listed companies’ earnings, leverage, financing costs, asset values, investor risk appetite or broader market sentiment.

The index is also sector-concentrated. Because it includes only real-estate sector shares, it is less diversified than a broad equity benchmark. Company-specific events, changes in property valuation assumptions, refinancing conditions or regulatory developments affecting the real-estate sector may have a larger effect on this index than on a broad market index. The 5% weight cap moderates but does not eliminate sector-wide concentration risk.^[1]

Another limitation is that the index represents companies listed on TASE and eligible under TASE rules. Private real-estate companies, unlisted property owners and foreign companies without eligible TASE listings are outside the index. The index therefore reflects the listed segment of the real-estate sector rather than the full real-estate economy.

Finally, the methodology and composition can change. The index itself has already changed historically, having been broadened from TA-RealEstate15 on 9 February 2017.^[1] TASE remains responsible for calculating and maintaining the index, including eligibility rules, review procedures and corporate-action treatment.^[1] Users of the index therefore need to distinguish between long-run historical series and current index rules when making comparisons across time.