Hot, lukewarm, cooling down: will the slowdown in real estate also halt the offerings?

The article discusses the slowdown in the real estate market in Israel and its impact on stock offerings. Out of 20 offerings made by companies since the beginning of the year, eight were in the real estate sector, but many of them ended in losses for investors. The TA-Building index, which includes residential construction promotion companies, has dropped by 24% from the peak recorded in March, indicating weak market performance. This slowdown is due to the effects of high interest rates and difficulties in the office market, especially in light of the declining demand in the high-tech sector.

The article notes the excessive exposure of banks to real estate, with nearly 60% of loans in the banking system allocated to this sector, contrary to recommendations not to exceed 20%. This situation creates broad economic problems, as many resources are funneled into real estate instead of investing in other growth engines. In summary, there is a sense of helplessness towards real estate companies issuing shares while they are on the brink of insolvency, raising questions about the responsibility of institutional investors.