"The euphoria in the real estate market requires us to be a little modest"

The Eilat Real Estate Conference was launched in the presence of Housing Minister Zeev Elkin. Nir Shmol, CEO of Snir: "A well-known rule is that what is unbalanced does not last long."

Dun & Bradstreet awarded awards to top companies in 2021.

Minister Elkin: "I am confident that real estate activity will continue to march us forward"

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Real Estate

08/12/2021

Wednesday, 08 December 2021, 12:49 Updated: 13:05

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Last night (Tuesday), Doron Cohen, chairman and owner of Dun & Bradstreet Israel, held the traditional gala evening of Dun & Bradstreet as part of the huge conference - the city of real estate in Eilat, in the presence of the Minister of Construction and Housing, Zeev Elkin.

During the evening ceremony awarding of a real estate luxury of Dun & Bradstreet senior industry in Israel. The prizes were awarded to leading companies in 2021 and awarded a lifetime achievement award and a medal woman trailblazer in the industry.

The winners chosen by a special committee which included members of the management and Board of Directors of D & Bradstreet as well as a number of members of the presidency of the Real Estate City Conference.

The winners were found to see the committee as outstanding in their field and demonstrated leadership in the real estate industry over time, strategic vision and long-term vision, impressive business results, stable management backbone, the company is recognized as having a positive, image and economic impact in the economy.

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Doron Cohen and Minister Zeev Elkin (Photo: Niv Kantor)

Minister of Construction and Housing Zeev Elkin said: "The real estate industry is currently the locomotive of the domestic economy in the State of Israel.

We are currently working on a variety of levels to remove the barriers and overcome obstacles in the entire real estate industry and in the field of urban renewal in particular, in order to allow the construction boom in Israel to continue in the best and most efficient way. The real estate in Israel continued with extensive activity and acted to drive the momentum of construction and development in Israel.

In a complex and saturated business environment decision-making nodes, companies large and small alike need comprehensive business information and enlist the help of companies such as Dun & Bradstreet to make the best decisions.

I am happy to be here tonight, together with the best of the best in the industry and to cherish the real estate activity in the country that I am sure will continue to march the State of Israel forward. "

Complete list of winners

• Lifetime Achievement Award: Avi Ben Avraham, Chairman of the Hamerman Plant

• Signal of Excellence for a Breakthrough Woman: Nehama Bogin, Founder and Owner Nehama Bogin Appraisals and Real Estate Consulting

• Business excellence in real estate development: Africa Israel Residence

• Business excellence in construction: Ashtrom Group

• Business excellence in the field of construction clearance: Ashdar Construction Company

• Business excellence in the field of TMA 38: Eco City S.L. Entrepreneurship and Construction

• Hotel business excellence: Fattal hotel chain

What happens if the interest rate goes up and the wheel stops?

Nir Shmol (Photo: Tomer Feder)

Nir Shmol, CEO of Snir, commented on the market situation. "The euphoria in the real estate market in Israel requires all of us: developers, contractors, banks and all service providers related to the industry, to be a little modest. A well-known rule in nature is that what is unbalanced does not last long. Against the background of the constant price increases in the housing market in Israel, we must ask ourselves what will happen if the interest rate rises and the wheel stops. "

Shmol addressed the question of what will happen in the housing market if interest rates rise. "In such a case, many homebuyers, especially young couples and housing developers, will pay more for mortgage repayments. An increase in interest rates will lead to a reduction in the average mortgage and an adjustment in buyers' repayment capacity. Their apartment and thus will be added to the market apartments that are currently lacking in it.

"Apartment investors who enjoy a low yield of no more than 3-2.5 percent in Israel on renting apartments but do enjoy an annual increase in the value of their apartment, will think twice whether it is the right time to buy an apartment when the price of money has risen and the yield on the property has fallen or remained constant. In a situation where it costs much more to raise the money for the purchase and the amount of the monthly mortgage repayment may be higher than the rent paid to them each month. .

Shmol also noted that a rise in interest rates will lead to a change in thinking in all real estate funds and REIT companies that have entered the Israeli real estate market.

They currently benefit mainly from low recruitment costs versus relatively low yields on apartments for rent in Israel, and enjoy an average percentage gap between the money raised prices versus the yield.

"Despite the tax benefits provided under the Capital Investment Encouragement Law, such a situation will lead to a rethinking of the many companies that have entered the Israeli real estate market in favor of long-term rental housing."

From right to left: Senior Israeli JLL Ziv Shor, Mor Ziv, Uri Gazbari (Photo: Yachz)

In a panel on real estate innovation - THE NEW NORMAL IN CONSTRUCTION, Moore Ziv, JLL Head of: Capital Markets IL, emphasized: "Real estate innovation has gone from Nice to have to Must have. We at JLL are proud to provide our clients with the most innovative technologies already in more than 6 billion sqf of properties and more than 600 of our clients across 130 countries."

Ziv Shor, CEO of JLL in Israel, added: "The real estate world is undergoing huge changes hand in hand with the ProTech field. The application of technologies provides a significant advantage to both JLL and our customers. Whether it is a more accurate assessment of the future value of properties, identification Investment opportunities or cost savings. "

Uri Gazbari, JLL's director of brokerage: "Although the field of brokerage is traditional in nature, we are in the midst of a process of profound change in the field and changes in new business models in technologies entering the field, such as simulations, virtual tours, database pricing, and AI use. In the future, we will continue to see many changes in the field. "

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