Financing costs in the construction sector rose by 10% in 2025 compared to 2024, and by 20% excluding giants like Dori and Shikun & Binui, according to an analysis of major public real estate companies' reports. This situation forces developers to reassess their strategies and slow down their activities. The residential construction sector, along with commercial and employment sectors, faces significant challenges. A lack of workforce, soaring raw material prices, and high interest rates complicate matters. The war has led to a dramatic increase in mortgage rates and a drop in real estate prices nationwide. In the Gush Dan area, half a million urban renewal housing projects increase supply, further driving down prices for the next five years. Developers must cut prices to sell, and buyers are advised not to rush into impulsive purchases, as the market becomes buyer-friendly.
