In preparation for the DUN’S 100 forum for prominent jurists in the field of real estate, Adv. Omer Gadish participated in an experts’ interview, in which reference was made to additional major legal issues that accompany the sector at these times.

Adv. Gadish referred to the housing crisis, banking and political solutions and obvious market trends, and when asked about the situation of entrepreneurs and whether it would be right to create a special loans system for entrepreneurs to assist companies in transitioning these present times, his answer was: “Absolutely. The housing crisis, which commenced already in April 2022 and caused a drop in construction commencements and also, with new apartments sold, the war that began five months ago has caused an almost complete freeze in the sector. 

In terms of supply – Palestinian workers have not been allowed to come to work due to the curfew on Judea and Samaria and on Gaza, many authorities have ordered building sites to be closed down, many foreign workers fled the country and many Israeli workers have been enlisted to military duty. In terms of demand – there has been a huge drop in demand in all sectors of the economy, and of course the building sector. Naturally during a war, and most certainly during the initial months, when people did not visit sample apartments, no new apartments were purchased.  This of course caused severe injury to the cash flow of all factors in the building sector.  The balance of debt in the building sector, which is comprised mainly of a banking debt and of the issue of bonds on the capital market, has increased dramatically, and reserves amounts allocated for credit losses have also increased significantly. I think that a system must be found to assist entrepreneurs in transitioning this period, otherwise many will face insolvency proceedings and a snowball effect will be generated causing loss to the entire economy. Some sort of solution subsidized by the State must be found – State guarantee for credit insurance, subsidized loans for entrepreneurs, and of course increasing quotas of foreign workers or permits to bring in foreign workers privately. These suggestions come at a hefty price, but I am certain that in the overall view of the economy it is the correct and cheapest solution for the country”.

For the complete interview: Calcalist>>