Urban renewal is one of the main growth engines of Israel’s housing market, but alongside the increase in project volume and their growing complexity, structural failures in supervision on behalf of apartment owners are becoming more apparent. Industry professionals point to a persistent gap between how the supervision role is presented during project recruitment and the actual execution responsibility - a gap that may only become evident at advanced stages of construction, sometimes when corrective options are already limited.
The Danger: Irreversible Early Decisions
Urban renewal projects are characterized by an exceptionally long life cycle, sometimes approaching a decade. Even at the initial stage, apartment owners must choose the professionals who will accompany them throughout the process: lawyers, developers, appraisers, and supervision firms. These choices are usually made under conditions of uncertainty and are often based on presentations, commitments, and descriptions of experience that do not always reflect proven capability in managing complex execution stages.
According to industry sources, in a market without dedicated regulation governing supervision on behalf of apartment owners, there is a blurring between marketing messages and professional competence. Theoretical experience or involvement in early organizational stages is sometimes presented as equivalent to experience gained in projects that actually reached demolition, construction, occupancy, and warranty stages.
Supervision Without Oversight: A Structural Risk for Apartment Owners
Supervision on behalf of apartment owners is meant to act as a balancing factor against the developer and contractor, but in practice it is a role with high responsibility, limited authority, and dependency on the contractual framework. Industry experts emphasize that promises of intensive guidance, daily on-site presence, or deep involvement in planning require a careful evaluation of resources, manpower, and operational feasibility, rather than reliance on general statements.
Yigal Eliyahu, partner and founder of the Yigal Alon Group, stresses that the main criterion for selecting a supervisor should be proven execution experience: "Supervision on behalf of apartment owners is a clearly operational role. It is tested in the ability to identify risks, demand corrections, make decisions under pressure, and support apartment owners even in the most complex moments of the project. Nice presentations are no substitute for experience gained in the field, especially in projects that last for years."
According to industry sources, as long as there is no mandatory professional standard or clear regulatory framework, the responsibility for making an informed choice will continue to fall on the apartment owners themselves, sometimes without the necessary professional tools. As urban renewal expands and becomes a cornerstone of the housing market, the need to distinguish between marketing and execution, and between general statements and actual professional responsibility, becomes even more critical.
Or Keren, partner and founder of KDC Law Firm, says: "The stage of selecting consultants is one of the most critical moments for apartment owners in an urban renewal project. These are professionals who accompany apartment owners for years and lead your renewal journey from initial organization to handing over the keys. Apartment owners and representatives must remember that each project has its own complexity and uniqueness: planning, legal, and financial. Regarding supervision on behalf of apartment owners, the supervisor represents the eyes of the owners on the construction site, so it is very important that they have execution experience in projects of this type and, of course, that they are not biased or have interests that could harm the process."