The Marker, Yael Darel, Adi Cohen, 10.03.2020

How will the corona epidemic on Israel's housing market? At this early to draw conclusions, since most of the parameters that determine the price of the apartment - shortage of manpower, persistence of bureaucratic procedures and the decline in housing starts - pull prices upward.

In recent days reported some of the real estate sales office little traffic, and numerous cancellations of meetings from apartment buyers who fear to enter the financial commitment. However, it is clear that the dramatic collapse on the stock exchange listed real estate investment becomes attractive channel and safer, and the housing market estimate Stagnating sales is only temporary respite.

At the same time, the persistence of the epidemic and the growing turmoil in the construction industry - seem harbingers projects are delayed, and apartments delivery date may be united. For example, Gindi Holdings announced in recent days to all purchasers of the Company's project is expected to delay delivery of the apartments, because of delays in building materials and a shortage of manpower. The project is a 23-story tower in Ramat Hadar Givat Shmuel with 108 units. Gindi Holdings said: "This is a warning, and not a decision on the postponement, since the company is obliged to inform in advance just in case there will be a delay."

In recent days, the real estate industry executives cautioned that there may be delays in the delivery of apartments. President of the Association of Builders of the country, Raul knit warned that the closures would prevent the arrival of Palestinian workers in Israel's construction sites cause a delay in completing the construction of 73 thousand apartments, along with billions in losses and a collapse of contractors. "termination of employment of 65 thousand Palestinians will halt work in, and a loss of 4.56 GDP per billion a month," he said.

"If this trend is not yet dramatic - certainly feel the movement of customers is declining sales offices," says Amir Cohen, VP Marketing at YH Damari. He said, "The general public panic due to corona also permeates the readiness of customers to reach construction sites or in the visitor center - which led to the cancellation of meetings and visits, as well as the relatively low number of appeals to sales. "

Real estate industry source said that at this stage there is no expectation of a decline in prices, but the effect of the public mood reflected in the sales offices. "Last week, we feel the impact of the epidemic corona several levels of activity - many people are in isolation and cancel meetings; There is concern going economic catastrophe and therefore postponing decisions; There are sharp declines on the stock exchange and people are afraid to sell shares; Created an atmosphere of crisis, general depressed mood, "he said.

Emmanuel Turk, CEO of ICUBE organization specializing in consulting and real estate fairs in France, said, "Last week we canceled a large conference that 20 Israeli real estate companies were supposed to exhibit their projects. On average, this conference come thousand people. Currently we rejected the May conference, and we hope that by then the situation will return to normal. Meanwhile, we are in uncertainty ".

"There is an acceleration in the purchase of apartments"

But at this stage, as mentioned, most of the real estate industry estimates are that this is a temporary reprieve from certain parts of the public. At the same time, reports indicate that some places just the increased traffic of buyers - mainly housing enhancers wanting to buy an apartment before will now further increase. Also in places has been renewed interest from investors in light of the ongoing collapse on the stock exchange.

Haim Karadi Prashkovsky CEO, says that "in recent weeks an increase in the number of visitors and the number of homebuyers. Since then, the second people get off the fence. They realize that prices will not fall, and there is no choice but to purchase the property they need. In addition, we recognize interest of investors who want to reduce exposure to the capital market as a result of falling stock prices. The interest of the investors we identify our projects mainly in Ramle and Haifa, which has a stock of small apartments that can accommodate investment. "

Ronnie Cohen, CEO Eldar Estate also indicates the trend is strengthening. "Last week rather considerable acceleration of transactions for the purchase of apartments. The reason is that investors, some of whom were very active in the capital market, they can take out their investments, looking for avenues to invest the money - and choose real estate. I believe that if I continue that and exchanges will continue to dive, the trend will only grow stronger. "

Yoram Avisror, Vice President of Marketing and Sales at Avisror, indicates that in recent days there is an increase in sales, especially in Beersheba and Ashkelon. "We reached the conclusion that the rise can be attributed to escape from the capital market due to its origin. Investors interested in cities like Beersheba and Ashkelon, where housing prices are still relatively attractive and you can get them good returns. "

Despite reports from some of the largest real estate decline in the number of visitors at construction sites, Karadi estimates that home prices will continue to climb. "There is a housing shortage, and it will continue in the short term and in the long run. Lack of land, lack of hands in the industry and it is expected to exacerbate the crisis beams. Therefore, I do not see how market prices down in the near future."