The Israeli real estate market is facing challenges due to prolonged conflict and high interest rates, leading to a significant slowdown in residential and office sectors outside Tel Aviv. Despite this, several real estate companies, led by Tidhar, are planning to raise funds on the stock exchange, anticipating the end of the conflict and interest rate cuts. Concerns remain about the sustainability of these moves, particularly due to misleading accounting practices allowed by IFRS15, which permit reporting anticipated revenues as actual. The urban renewal market is especially vulnerable, with many projects at risk of halting. Companies that have over-leveraged themselves for projects face potential bankruptcy, and institutional investors may be hesitant to purchase their shares. The market is seen as a bubble that could burst, leading to a significant drop in real estate prices.
