At a national real estate conference organized by Mizrahi Tefahot and Yedioth Ahronoth, a panel titled “Real Estate 2026: How Do We Move the Industry Forward?” brought together four senior figures from government, construction, urban renewal and banking. The discussion focused on whether the state is doing enough, why developers and buyers are waiting on the sidelines, and what would be needed to restart the sector.
Housing Ministry director general Yehuda Morgenshtern said the market has shifted to buyers, not sellers, and argued that falling prices are deeper than official data show. He said the government has already expanded supply planning by hundreds of thousands of units, signed 25 framework agreements by year-end, brought in 80,000 foreign workers, allocated 5 billion shekels for construction during the war, and offered incentives to local authorities. Still, he said long-term rental housing and cutting bureaucracy remain major gaps, calling for a single central building authority, or “a Ministry for National Housing.”
Contractors Association president Roni Brik said the state fails to meet commitments, confiscates guarantees from contractors who miss deadlines for reasons beyond their control, and does not bring enough labor. He urged a post-election housing and infrastructure cabinet and a five-year plan with stability. Brik also proposed building 100,000 rental units between Gedera and Hadera, financed by selling state land in expensive areas and using the proceeds to build apartments on state-owned land for 2,500 shekels a month for 10 years for young couples. He said many young couples changed after October 7 and want security and stability.
Former Urban Renewal Authority head Elizer Bambarger said the sector is still functioning despite severe challenges, with deals and plans still moving ahead. He said recent rocket attacks and mass evacuations should have led to a broad 10-year urban renewal plan, but the approved program only covers one or two years. He also criticized government decision-making as overly concentrated and not strategic.
Mizrahi Tefahot incoming mortgage head Avi Bedlov said foreign residents are increasingly looking to move to Israel, driven by a strong economy and rising antisemitism in Western Europe and the United States. He said the bank is prepared with dedicated IPB branches and staff who speak clients’ languages. Bedlov also suggested land subsidies, renewed relocation grants, temporary tax incentives, and higher financing ratios in the periphery to help young buyers. The panel ended with broad agreement that long-term rental housing, less centralization at the Finance Ministry, and a strategic planning body are urgently needed.
