Top Israeli real estate lawyers and industry figures gathered at the Duns 100 forum to assess how war, interest rates, falling transactions and the gap between planning and execution are affecting the sector. The discussion, convened by Dun & Bradstreet, covered housing, urban renewal, combination deals, income-producing real estate, the office market, artificial intelligence and emerging infrastructure-related property work.
At the opening, Duns 100’s Shila Zbaro Weiss said the market is demanding certainty, not perfection. She said residential real estate is at a two-year high in unsold apartments, permits and starts have risen, but execution is lagging. In urban renewal, she said permits are down 20% versus 2024 and many projects are being rechecked on developer compensation. She also described a frozen income-producing market and argued the industry has entered an era of selectivity, where large players win because they can create certainty.
Several lawyers said uncertainty is changing contract structures and risk allocation. Dani Vichlebsky said six years of uncertainty, beginning with COVID and continuing through war, has pushed agreements toward stronger hedging, more flexibility for developers and more legal protections for buyers and lenders. Vered Tsror Jersi stressed that lease agreements for income-producing assets must reflect the broader business model, while warning that speed cannot replace due diligence. Raan Braaz said developers are showing renewed optimism, with tenders returning to normal and some sales above appraisal values. Moshe Moial said lawyers are now far more active and dynamic, and he sees more deals coming back to the table.
The panel also focused on delivery delays during wartime, with Irith Elkin saying late handovers are now widespread. Eran Orbach said courts appear more understanding, and argued a developer in Ashkelon who was three or four months late during the war should be praised, not sued. On combination deals, Moshe Raz Cohen warned about dependence on bank financing, while Tal Or said the end of TAMA 38 has left a planning vacuum because many municipalities have not advanced Shaked alternatives. Ilan Kramer described combination transactions as highly uncertain until financing, and Aviram Goldstein called for compensation mechanisms that recognize the gap between central Israel and the periphery.
The later discussion turned to commercial property, offices and new sectors. Guy Shalev warned against the “triple-A trap,” where landlords are too lenient with major tenants and then face payment disputes. Avi Ben Yaakov said the office market is splitting between Tel Aviv and surrounding areas, with new and older properties outside the core struggling to fill. Speakers also said AI could speed up legal and planning work, though Ofer Even warned against overreliance on AI-generated “expertise.” Finally, Sefi Zilberstein highlighted a new wave of transactions in power stations, data centers and storage facilities, saying a single power-plant deal can reach about NIS 5 billion, and Idan Ben Yaakov said these fields need better coordination between planning, infrastructure and financing.
