Who are the 10 leading companies in Israel in urban renewal? (Photo: ShutterStock)
This morning (Wednesday) Dan & Bradstreet, the leading international company for credit risk management and business information, published the ranking of the real estate startup companies in the urban renewal industry in Israel for 2023 - for the fifth year in a row. So how is the ranking done and which companies are in the top ten
and belong to the elite group (Dunstars)? All the details are here:
In the background is the land disaster in Turkey and Israel's lack of preparedness
The ranking of the leading companies in urban renewal published by Dunn & Bradstreet was made in the background of the increased discourse on Israel's lack of preparedness for earthquakes and natural disasters, as well as the high importance of urban renewal in tens of thousands of homes in Israel.
The report published this morning shows that according to the chairman of the local government center, about 100,000 buildings across the country do not meet the earthquake standard.
Also, the security situation requires providing a response to apartments that do not have standard shielding.
Furthermore, the CBS data indicates that in 2022 building permits were issued for 77,690 apartments. An increase of 5.2% compared to 2021. About a quarter of the construction starts were built as part of urban renewal, of which about 73.6% were part of TAMA and construction clearance.
In 2022, the construction of approximately 11,330 apartments began as a result of the demolition of an existing building and the construction of a new building.
81.4% of them were built as part of TMA 38/2 and eviction and construction. About 57.9% of all the apartments were built in the Tel Aviv District and about 22.4% in the Central District, compared to about 3.4% in the North District and about 2.8% in the South District. In addition, in the same year their construction
began of approximately 4,800 apartments as construction additions to existing buildings, of which approximately 55.4% were built within TMA 38. Of the total number of apartments, approximately 23.9% were built in the Tel Aviv district and approximately 22% in the Central district.
How do you rate hundreds of urban renewal entrepreneurs?
As of 2022, there are approximately 1,500 real estate entrepreneurs operating in Israel, of which hundreds of entrepreneurs have been tested for the Duns 100 urban renewal ranking. According to
Duns & Bradstreet data, 1 out of every 3 companies active in the field is at high risk. Therefore, the initial threshold requirement for the rating examines The financial strength of each candidate company, which is tested by monitoring the business information available about it in the Dan & Bradstreet databases.
The rating is made according to a methodology based on professional criteria, within which each company is required to provide detailed information about the projects it handled during the past year.
The reliability of the information is checked, as the companies are asked to hand over to Dan & Bradstreet appropriate references for the projects, according to the stage at which they were delivered (building permit, permit with conditions, Form 4 for occupied projects).
The companies were ranked in a weighted rating model - each stage of the project was given a relative weight, with a higher weight given to projects in advanced stages.
Within this, an additional weighting of the size of the project (the number of housing units planned/built) was carried out.
In addition, based on the assumption that urban renewal projects take a long time and are heavy on bureaucracy, additional weight is given to the history of the projects that have been inhabited.
In TMA, weight is given to projects occupied in the 5 years prior to the rating year (2017-2021), and in Pinoy Binui, for the first time, weight is given to projects occupied since the day the company was established.
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Construction of a building on Katznelson Street, Rishon LeZion (Photo: ShutterStock)
In the TMA and Pinoy Binui ratings, the companies are ranked according to quality groups: Dunstars (super group), leading (tier 1), prominent (tier 2). In TMA 38 the well-known companies were also ranked (tier 3), with the order of the companies within each quality group is in alphabetical order.
Also, an urban ranking of TMA 38 was carried out, which presents the leading entrepreneurs in the cities - Bat Yam, Givatayim, Herzliya, Holon, Haifa, Jerusalem, Kfar Saba, Netanya, Petah Tikva, Kiryat Ono, Ramat Gan, Ramat Hasharon, Ra'anana and Tel Aviv.
In addition, this year, for the first time, an urban ranking was carried out for the cities of Ashdod and Rishon Lezion.
And now for the results: which companies appear in Dunstars?
In the 2023 ranking, 146 companies were ranked, including 28 companies that were ranked in TMA according to cities only.
In the elite group, Dunstars, in Pinoy Binui, the following were ranked: Aora, Azorim, Ashdar, the Urban Renewal Company, Matsaloi, Zim Behari Real Estate, which came up for the first time, the Almog Group. D.A.I., Gebso Group and Kerso Real Estate. Together, these will take part in 2022 in a total of 369 projects, among which 27 projects are under construction.
Africa Urban Renewal, rose to Tier 1 this year. Out of 10 projects in which the company takes part in total, as of 2022, 3 construction evacuation projects with a total of 522 units are being implemented.
To the super group Dunstars in TMA 38 were added This year 3 companies - C. P. Hebra Labinin, Gabbay Group and Krinsky Gottlieb.
Prominent is CP Construction Company, whose growth can be seen in the ranking every year, and in 2022 took part in a total of 52 projects. Of these, 14 projects received a permit under the conditions,
The 10 leading companies in the urban renewal industry in Israel (the elite group, Dunstars) (Photo: Dun & Bradstreet)
The people of the city company, which over the past 4 years was in 2nd place in the city of Tel Aviv, climbed to first place with a total of 52 projects, including 8 projects that received a permit with conditions, 12 that received a construction permit and two projects that were occupied in 2022. According to Dan's
ranking & Bradstreet, the 10 leading companies in the urban renewal industry in Israel (the elite group, Dunstars) are: City People with a total of 52 projects in 2022;
Eco City with 49 projects;
I will broadcast with 33;
Beit and Teg Real Estate Enterprises with 29; Metropolis Urban Renewal and Real Estate Enterprises with 10; C.P. Sheva Labinin with 52; Gabai Group with 31; Kidar Buildings with 83; and Krinsky Gottlieb with 30;
"In order to continue to see growth in the industry, it is essential to create higher certainty"
Sheila Zebro Weiss, manager of the Duns 100 department at Dun & Bradstreet, summarizes the ranking: "According to Dun & Bradstreet data, in 2022 there was a 40% increase in the number of construction permits received for demolition projects. In projects under the TAMA 38 program, there was an increase of 29% in the number of building permits received during that period.
In order to continue to see growth in the industry, it is essential to create greater certainty."
"The ongoing crisis in the real estate sector emphasizes the need to promote and realize urban renewal projects. The sharp increase in interest rates has boosted the financing costs of the developers and led to a slowdown in the real estate industry.
Factors such as an increase in interest rates, a decrease in sales and planning uncertainties will have a substantial impact on the risk level of entrepreneurs in 2023 and we recommend that you regularly monitor the situation of companies operating in the field.
"In addition, the cities of the Syrian-African rift are not prepared for the next earthquake. The TMA 38 plan mainly resulted in projects in the areas of demand instead of in the places with the highest risk.
For this purpose, there is a need for appropriate funding and assistance from the government from the local authorities."
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