"How much does it cost to build a country?" – In the first panel at the "Financing Time" conference by Real Estate Media, held at the Carlton Hotel in Tel Aviv, attorney Ronit Shbiro, co-owner of the Shbiro Group, addressed the representative of the Bank of Israel sitting next to her on stage: "The Bank of Israel is as slow as the IDF on October 7; it reacts dangerously late. Interest rates should have dropped long ago, and without creative solutions like financing promotions, the industry would have collapsed. The promotions are not dangerous; they are what saved the market."
Shbiro added that market flexibility and trust must be restored: "When a developer offers buyers staggered payments or a discount on the down payment, it is not a marketing trick; it is a way to allow young couples to enter an apartment. Instead of stopping this, the state should encourage financial creativity."
On the other hand, Zehava Buchholz, head of the Economic Unit at the Bank of Israel's banking supervision, emphasized that restrictions are intended to protect financial stability: "We are not against financing promotions, but there is a limit to flexibility. When a developer allows a buyer to finance almost the entire deal with a loan, they are pushing them into a risk they do not understand. The restriction is not meant to cancel promotions but to balance the buyer's risk with the desire to stimulate the market." However, Buchholz admitted that "there is room to consider exceptions in areas affected by the war and in urban renewal, where targeted and more flexible treatment is required."
The President of the Israel Contractors Association, Roni Brick, opened the conference by addressing the broader market picture and the need for unity between the private and public sectors: "We are at a critical moment in Israel's history, a country after a war, with an enormous need for reconstruction and rebuilding. This cannot remain only in the hands of the government. Developers, contractors, banks, and funds – all must get on the stretcher together."
Brick called for returning Israeli capital to local investment: "Instead of institutional investors buying real estate in Berlin or Athens, they need to invest here – in our construction, our infrastructure, our future. Only together, with Israeli capital, Israeli knowledge, and Israeli construction, can we turn the crisis into an opportunity for a whole generation."
Ronen Yafo, CEO of the Donitz-Elad Group, presented a more optimistic approach: "The real demand for apartments in Israel has not disappeared. It is simply sitting on the sidelines, waiting for confidence to return. Once there is certainty – we will see buyers returning in droves. Interest rates will drop, the public will wake up, and we will see a new wave of purchases." Yafo called on the government to cooperate with developers rather than fight them: "It is necessary to understand that we are not the state’s enemies; we are its partners in reconstruction and building. If we are given the tools, we will deliver the results."
Yaron Rockman, CEO of Ashtrom Properties, also presented an encouraging picture, particularly regarding the long-term rental market: "We are seeing enormous demand for housing, both for purchase and rental. The public has not disappeared; it is simply waiting for the right promotion or a change in interest rates. This means the market is alive and breathing." According to him, "Financing promotions do not create risk; they allow movement. If the rules continue to tighten, we will get a complete freeze in the Israeli real estate market, which will harm not only developers but the entire national economy."
CPA Chaya Kind, CEO of the Abu Family REIT, which invests in the long-term rental market, continued the positive tone: "We are not feeling a slowdown – every project we open for rent is fully leased within weeks. This proves that the demand for housing in Israel is only strengthening. Flexible financing should also be allowed in this area to create more long-term rental apartments."
Polly Tetro, founder and partner at Top Capital, reinforced the developers’ statements: "The non-bank system was at the forefront when others closed the taps. We are not the problem – we are the solution. Hundreds of projects received financing from us at a time when banks tightened their positions. This is not competition but cooperation that needs to expand."
According to him, "The economy is in cash flow distress. We enable developers to survive and continue building. If the state does not embrace non-bank entities as full partners, we will continue to stagnate."