In the past year, REITs in Israel have purchased 482 apartments from contractors, indicating distress in the residential real estate market. The upcoming index update on the stock exchange is expected to leave the TA-35 index without a residential real estate developer, reflecting the difficulties faced by development companies. REITs like Azorim Living, Magorit, and Rent It have taken advantage of the situation to buy apartments at low prices, thus easing the burden on contractors. For example, Tsarfati signed a deal with Azorim Living to sell 80 units in a project in the local council of Azor for 198 million shekels. Analysts note that selling a large number of apartments allows contractors to secure quick cash flow, save on financing and marketing costs, and reduce risks. The slowdown in the real estate market has become an opportunity for REITs, which can acquire properties at attractive prices, thereby increasing their asset portfolio.
Contractors in distress? REITs have already purchased 482 apartments this year
Source Calcalist
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