Israeli Real Estate Persists Despite the War

The real estate market experienced a slowdown due to the war, but some companies chose to continue building and marketing, viewing real estate as not just a business but also a value

The real estate market entered a state of partial stagnation following the outbreak of the war in early October 2023. The uncertainty brought on by the conflict led some real estate companies to halt all activity until stability returned to the market and the country in its entirety.

In contrast, other companies elected not to stop operations—both as a statement of principle as well as with the understanding that the market would eventually recover. Until that time, these companies sought to maintain a sense of normalcy for real estate buyers.

Now, the mass release of reservists over the past few weeks is generating positive momentum in the real estate sector. A report published this week by the Ministry of Finance’s Chief Economist revealed a rapid recovery in the real estate market this past January. These signs indicate that one of the country’s most in-demand sectors is back in action. Additionally, the labor shortage crisis is nearing a resolution, which is expected to facilitate the completion of all ongoing projects.

Harei Zahav, whose workforce included many employees called up for reserve duty on October 7 and in the days that followed, was one of the firms that decided not to halt operations when the war broke out. Despite many employees serving in combat roles in Gaza, Judea and Samaria, as well as along the Lebanese border, the company’s management resolved to forge ahead, ensuring stability for their clients.

As a result, numerous Harei Zahav projects across Judea and Samaria continued to see sales even during the war. "This decision is undoubtedly also a values-based statement," said Ze’ev Epstein, Chairman of Harei Zahav. "We understood that we couldn’t stop. Stopping would have rewarded terrorism—those who sought to disrupt our lives here. The second reason is that we never know what crisis might come next, and we cannot let crises dictate our actions. This was true during COVID, it was true when the Bank of Israel raised interest rates last year, and it’s true now during the war. Crises will always arise; the question is who manages whom—do you manage the crisis, or does the crisis manage you."

Currently, Harei Zahav is holding several sales events for a variety of projects across Judea and Samaria, including locations such as Reihan, Dotan, Negohot, and Tal Menashe. Additionally, the company will participate in the nationwide “Yad 2” real estate event at the Tel Aviv Exhibition Grounds.

The company reports a growing trend of intent-to-purchase agreements and signed contracts in high volumes, attributing this surge to the recent release of reservists as a significant catalyst. Ze’ev Epstein elaborated: "When we ask couples signing contracts why they’re making this move now, their answers span several reasons: the need for stability, the desire to fulfill the dream of owning a home, the motivation to establish themselves, to provide a larger space for their family, and many other reasons supporting their decision."

"From a practical standpoint, people now have the opportunity to sign. Those who were on the frontlines or in support roles have returned home and can move forward with their dream of buying a home. Additionally, people are genuinely seeking stability. A new home symbolizes the stability that so many are searching for after the emotional upheaval we’ve all experienced. Another factor is the recent interest rate cut by the Bank of Israel and the anticipated price hikes on the horizon. Buyers understand that now is the time to seize the opportunity before prices rise."

Harei Zahav’s sales events will take place on the following dates: March 29 in Kedem at Avnei Hefetz, April 5–6 at the "Nadlaytion" real estate event at the Tel Aviv Exhibition Grounds. It’s recommended to follow announcements for additional sales events.

Harei Zahav invites you to reach out and register for the sales events and, of course, to take advantage of the special benefits available to couples participating in them.