Yaron Rockman, CEO of Ashtrom Properties: "The real estate market in Israel, as in the rest of the world, is very sensitive to uncertainty, financial, social and political upheavals, and this combination of strengths we experienced in Israel this year led to a slowdown in the real estate market."
Yaron Rockman, CEO of Ashtrom Properties, Photo: Rami Zaranger
In housing, we witnessed a slowdown in the pace of home sales and, as a result, a slowdown in the rate of building starts, which affected moderation to a decline in housing prices in certain areas. On the other hand, the commercial real estate market enjoys greater stability as a result of long-term lease agreements, but even there, mainly in the area of employment buildings and the impact of the crisis on high-tech companies, a slowdown and a reduction in demand volumes can be seen.
The combination of events that have befallen us this year has led to a more moderate and cautious market that is working to increase efficiency. I am an optimistic person by nature and therefore believe that we will understand that broad national consensus is required in order to deal with the social and legal issues facing the State of Israel.
Assuming that we succeed in this and reduce the threats to the very existence of the state as a democratic state, a state of all its citizens, we will also be wise enough to deal with the economic issues on the agenda, high interest rates and inflation.
I do not expect dramatic changes in the coming year and I refrain from predicting, but I believe that we will see continued stabilization, cautious and informed behavior on the demand side, tenants and buyers, as well as on the supply side of developers. My assessment is that towards the end of 2024 we will see a decline in the US interest rate, which will also affect our interest rate and a slowdown in the level of inflation that will support the recovery in the market.
I believe that if we work right, responsibly and judiciously and make informed business decisions, we will end this challenging period we are experiencing stronger and built for sustainable growth."
Eitan Levy, Managing Partner at Ayala Agam: "Current market assessments speak of a minor decline in the interest rate, up to 1%. In such a situation, young couples will still be waiting on the fence and those who choose to sell will probably do so because of the mortgage amount. In addition, real estate companies that are in a state of leverage will find it difficult to get through the coming year, until the interest rate is lowered more significantly. If we add to this the high interest rates, it will be impossible to lower home prices significantly."
Eitan Levy, Managing Partner at Ayala Agam,
Avi Tam, CEO of Asia Cyrus: "In the south of the country, you don't feel the halt in sales. In Dimona, for example, sales continue as usual and there has even been a price increase of about four or five percent in the past month. The situation in the rental market is very bad. There is a decline in the number of apartments offered for rent, and due to the halt in sales, demand is only rising, and prices are rising accordingly at a double-digit rate, when it is difficult to see when and if it will stop. In the center of the country there is literally a 'tender' for every apartment. Many now understand that they made a mistake when they didn't buy an apartment in the past year and are forced to pay very expensive rent."
Avi Tam, CEO of Asia Cyrus, Photo: Shahar Tal
Yishai Roth, Deputy CEO of Shoval Group: "In my opinion, interest rates will come down soon, which will return buyers to purchasing homes in the numbers we saw before the interest rate increases. As soon as this happens, we will see a halt in the promotions of contractors who today offer attractive financing terms to buyers. Regarding price levels, I believe that in the short term prices will remain static because companies will collapse if there is a decline."
Yishai Roth, Deputy CEO of Shoval Group, Photo: Orly Eyal Levy
Wrong? We'll fix it! If you find a mistake in the article, please share with us