Israeli Homebuyers Prioritize Developer Stability Amid Industry Insolvencies
A new CofaceBDi survey reveals that Israeli homebuyers now prioritize developer reliability and financial stability over location and size, following a wave of over 1,000 contractor insolvencies.
The Israeli real estate market is undergoing a profound transformation as apartment buyers shift their priorities from traditional features such as location, apartment size, and balcony views to the financial stability and reliability of the development companies behind the projects.
A new survey by CofaceBDi, a credit risk management and business insights firm conducted among more than 120 real estate industry leaders and recent homebuyers, highlights this shift. According to the survey, 77% of buyers prioritize the company's past experience and completed projects, an identical 77% examine its reliability and compliance with commitments, 68% look at industry reputation, 68% review recommendations and complaints, and 64% evaluate financial stability.
Unprecedented Contractor Collapses
This cautious approach stems from severe industry turbulence over the past two years, during which more than 1,000 contracting and development companies collapsed or entered insolvency. According to CofaceBDi data, approximately 800 contractors and firms folded in 2025 alone, with an additional 270 companies shutting down during the first four months of 2026.
Contractors and developers surveyed also acknowledged the growing importance of branding and marketing. About 64.5% view branding as important, while 19% consider it critical for business success. When asked about the primary role of branding, 36% of developers stated it builds trust and security, 18% see it as a tool for differentiation, and 17% pointed to sales promotion.
The Shift to Marketing Trust
Dafna Ratzon, Chief Marketing Officer at CofaceBDi, emphasized that moving from marketing an apartment to marketing trust represents a deep behavioral change. Buyers scrutinize the corporate entity behind the project just as much as the physical property, requiring firms to anchor their reputation in financial robustness and transparent communication.
Industry experts note that buyers are now significantly more calculated and cautious. Attorney Dan Halpert, founder of Halpert & Co., explained that initial inquiries no longer focus on kitchen specifications or floor plans, but rather on mitigating the extreme risk of developer insolvency. Consequently, modern real estate marketing must be anchored in robust financial guarantees, proven experience, and absolute transparency throughout the project lifecycle.
