Peleg Dadovich, owner and CEO of Propdo, told the Calcalist and Migdal Financial Future conference that Israeli real estate has been battered, but is still far from collapse. He said demand has fallen after years in which the sector seemed resilient to negative sentiment, yet, in his view, “real estate is here to stay.” Propdo focuses on residential real estate and urban renewal in Israel and is traded on the Tel Aviv Stock Exchange at a market value of about 223 million shekels.
Dadovich said the current environment, marked by high interest rates and an ongoing war, creates a historical opportunity for deals. He described it as an “Archimedean point” and a “blue ocean” in which investors can quietly take positions and build future financial moves despite difficult conditions. He said Propdo sees urban renewal as the main growth engine in Israeli real estate because it allows projects to be launched through agreements with apartment owners, without buying land or paying financing costs upfront.
He said the company realized after the October 7 massacre that the market was weak, but that a public company with a financial platform could connect with private urban renewal firms that were in distress. According to him, that strategy led Propdo to buy seven urban renewal companies in three years. Today, he said, the company has a pipeline of 30,000 housing units in Israel, with its development pipeline continuing to expand.
Dadovich rejected claims that the market is in free fall. He pointed to 90,000 transactions in 2025, which he called the sector’s lowest point in recent years, but said that is not stagnation or collapse. “I do not believe the scary slogans that the real estate market is in total collapse,” he said, adding that he does not see builders “jumping off rooftops.” He said activity is starting to return to sales offices and predicted that demand will rebound quickly.
