The real estate market in Israel is facing significant challenges, with developers and contractors forced to delay repayments and extend loans. This situation indicates a deep slowdown in the sector, with financing companies presenting data illustrating the difficulties far more than what is reported in the market. While developers claim the slowdown is temporary, some factors warn of a severe crisis that could lead to a reclassification of the sector. Banks are exposed to high risks in the real estate field, with nearly 60% of loans in the banking system related to real estate, raising concerns about the stability of the financial system. There is a sense of illusion of financial wealth, while the productive capacity of the economy is affected. The article suggests that if developers hold onto apartments without selling them, the public may see this as a betrayal of their role. Forecasts indicate significant price declines in the real estate market in the coming years, which could impact the country's economy.
Small Investor, Not Just Contractors: The Non-Bank Credit Market Reveals the Depth of the Slowdown in the Housing Sector
Based on themarker
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