הקבלן המוכר בראיון: "יש פרויקטים שבהם קבלנים מרוויחים 3 % "

The slowdown in the real estate market is palpable, with contractors lowering prices and buyers adopting a more cautious approach, particularly in the second-hand market. Apartments lacking a safe room are seeing price reductions. Avi Zeitouni, former chairman of the Contractors Association in Tel Aviv and an entrepreneur, stated that while the pace of deals has slowed, the market has not stopped. He noted strong demand in areas like Rehovot, Ness Ziona, and Yavne, especially from families looking to upgrade their homes. Official statistics show a 25% increase in apartment sales in the third quarter, indicating continued demand. Zeitouni believes that as interest rates continue to fall and economic certainty grows, sales will improve, especially for quality properties in good locations at the right price.

Zeitouni emphasized that while interest rates are a significant factor, they are not the sole cause of the slowdown. He cited uncertainty due to upcoming elections and ongoing security threats as reasons for potential buyers to postpone decisions. He also suggested that the Bank of Israel's cautious interest rate cuts are too gradual and advocated for a more substantial reduction to stimulate the market. He believes that a combination of lower interest rates, increased economic stability, and clear government policy addressing housing market barriers, accelerating planning and construction, and increasing supply will restore buyer confidence and sales momentum.

Regarding his own project in East Rehovot, Zeitouni mentioned stable prices during the pre-sale phase, with flexible payment terms offered to buyers. He clarified that the widely cited figure of 85,000 unsold apartments includes units under construction, with only about 15,000 ready for occupancy. He also addressed contractor profitability, explaining that while large profits may seem high, they must be viewed in the context of significant investments, risks, and rising construction costs, which have reduced developer profit margins to as low as 3-4% on some projects. This slim margin makes any delay or unexpected cost increase potentially ruinous. He acknowledged that some developers are selling at a loss to generate cash flow and meet loan obligations, sometimes requiring personal investment to cover shortfalls.

Looking ahead, Zeitouni expressed optimism for 2027, anticipating a gradual return to stability if a stable government is formed, a budget is passed, and the housing crisis is prioritized. He also highlighted the potential impact of a reduction in the purchase tax, which could re-engage investors and significantly boost transaction volumes. He advised hesitant buyers to act now while the market favors them.