The Leaders of the Urban Renewal Market in Tel Aviv
The Tel Aviv real estate market sets the tone for the entire sector. New data from Dun & Bradstreet reveals which companies dominate urban renewal and how the nature of projects is shifting across the country.
The Tel Aviv area is a key region that sets the agenda in the real estate market. This is driven by the volume of housing units under construction, the number of unsold apartments, and, of course, prices. When the Tel Aviv market is on the rise, it is reflected in the figures: housing prices climb, the number of transactions increases, and the market awakens. A decline in activity in this city exerts psychological pressure on buyers nationwide.
One solution for increasing housing supply is urban renewal, an industry currently shifting toward larger and more mature projects. According to Dun & Bradstreet data, the number of reported housing units increased by approximately 22%, compared to a 9% rise in the number of projects. The number of occupied housing units jumped by approximately 62%, and the number of units in projects at advanced stages increased by approximately 27%.
Regarding leadership in the Tel Aviv area, "Anshei Ha'ir" dominates in terms of projects occupied last year, despite a sales decline that even led the company to hold a lottery for a free apartment. Companies dominating other cities include:
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"Doron Partush Group" (Holon)
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"Rinovo Nadlan" (Herzliya)
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"Kedar Mivnim" (Kfar Saba and Ra'anana)
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"Tzalehar Bniya Pituach" (Ashdod)
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"City Projects Entrepreneurship and Urban Renewal" (Bat Yam)
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"Oracle Real Estate Entrepreneurship" (Givatayim)
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"Yesodot Shituf-Kahn Group" (Jerusalem)
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"Basis Handasa" (Rishon LeZion)
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"Yaakov Gilboa Construction and Entrepreneurship" (Haifa)
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"Krinsky Gottlieb" (Ramat Gan)
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"T.P. Construction Company" (Ramat HaSharon)
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"Kata Group" (Petah Tikva)
An analysis of the 13 companies dominating urban renewal in Tel Aviv shows that "Yaaz Construction Entrepreneurship" and "Eco City" have the largest number of projects. "Yaaz" also holds the largest volume of projects in the pre-permit stage in the area.
Despite a challenging market environment, rated companies maintain stability regarding business risk. Supplier reports indicate high payment morale: 80% of suppliers report that payments are made on time, and another 20% report that payments are usually made on time.
Tel Aviv remains the central hub of urban renewal activity, yet developers are expanding elsewhere. Jerusalem, Haifa, Holon, Netanya, and Herzliya have recorded an increase in the number of projects. In Bat Yam, for instance, there is a decrease in the number of projects alongside an increase in the volume of housing units, indicating a transition to larger-scale developments.
