The increasing pressure on apartment prices and high financing costs is expected to make it difficult for small developers in the Israeli real estate market, estimates Avi Shakuri, senior analyst at Psagot Sigma. He points out that developers with low equity may need partners or mergers to survive this challenging period. Companies with cash will be able to take advantage of the situation to make purchases at low prices. Shakuri emphasizes that the pressure affects all types of developers, including those specializing in luxury apartments and construction in the periphery. The high inventory of unsold apartments, especially in central Israel, adds to the pressure on the market, with over 55% of the inventory concentrated in these areas. He predicts that the inventory will continue to weigh on sales conditions for at least another year, and demand for large apartments in the center will decline. Additionally, price drops are already noticeable, but the market's recovery will depend on a decrease in security concerns and political stability.