Potential foreign investment in Israeli real estate, innovative technologies in the construction industry and the "Russia-Ukraine war the day after" - these are just some of the topics discussed at an international conference, the first of its kind, held this week in Israel.
The event brought together representatives from the International Contractors Association (CICA) and senior executives in the real estate industry in Israel, in order to examine collaborations and possibly also Israeli investments in technologies, and of course, in real estate.
During the conference, Israeli start-up companies were introduced to guests from around the world, accompanied by the joint technology development system for the Israeli Association and the Israeli Government's Housing and Economy Ministries, Contech.
Among the companies that participated were Veev, which raised NIS 400 million, and a group of startups that offered improvements in construction, such as an electrical and lighting management system, a construction pricing system, tools for fast construction, safety solutions and alternative energy.
In addition, during the event, the potential of foreign real estate investments in Israel was discussed. Although the construction industry in Israel is different from Western countries, it enjoys tremendous demand for real estate properties.
This tremendous potential has also begun to be realized by foreign investors overseas, who do not cancel investments in urban renewal projects, such as evacuation of construction and NAP 38.
According to Raoul Srugo, president of the Builders of the Country Contractors Association, "All our guests abroad are interested in investing in real estate in Israel, in all segments, income-producing real estate, commerce, marlogs, residences, hotels and sheltered housing. There was also interest from A group from Uruguay who wanted to hear about investing in TMA 38 projects in Herzliya.
"We will take an active part in the reconstruction of Ukraine"
During the conference, participants addressed the Russia-Ukraine war and its effects, both present and in the future, on the real estate industry.
"This war will end at some point," explained the president of the Srugo Contractors Association, "and they will have to rebuild Ukraine. It is a real global challenge and there is no doubt that the Builders Association will be actively involved in rehabilitating Ukraine, including technological means, transportation and recycling. "Hence the waste that has accumulated there is in insane amounts. There is a need for Israeli companies that know how to separate materials and recycle them for reuse as building materials."
"We have two major problems," Irwin Perret, president of CICA Global for Real Estate Today, explains.
There are many raw materials that would come from Russia, and for the foreseeable future they are not going to get from there anymore, so this affects and drastically raises the prices.
Even if new players enter the market, construction costs will not return to the level they were about two years ago.
Inflation is higher in the construction industry and reaches a rate of about 40% on raw materials alone.
The solution lies, among other things, in construction technologies, which will enable the reduction of the use of manpower and raw materials.
These technologies are more cost-effective, faster, and often cost-effective. "
"Looking for technologies that will reduce manpower dependence"
The chairman of the Foundation for Encouraging the Development of the Construction Industry, Moshe Ben-Zaken, said during the conference:
It is of paramount importance to invest in and examine technologies that may help in any crisis that may not come in the future, and to disconnect the existing dependence on manpower.
The Foundation for the Encouragement and Development of the Construction Industry has set itself the goal of promoting safe construction in Israel and will continue to examine solutions, including technology.
The hosting of the general meeting of the International Contractors Association CICA is the first of its kind to take place in Israel, which shows the international relations that Israel is forging through the Association of Contractors Building the Country Overseas.
The International Contractors Association (CICA) was established in Tokyo in 1974, but has its headquarters in Paris.
The association represents the construction industry worldwide and today it brings together two terrestrial federations of contractors' unions: the European Federation of Construction Industries (FIEC) and the Inter-American Federation of Construction Industries (FIIC).
CICA members also include national associations from other areas, such as the Japan Overseas Construction Association (Ocaji) and the Israel Builders Association of Contractors and it takes care to represent and speak on behalf of the construction industry on issues on the agenda.
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