Dun & Bradstreet Israel says that the condition of companies in the real estate sector has markedly improved. The proportion of contractors and builders at risk of failure fell to 24% in January-October 2010 from 32% in the corresponding months of 2009. The figure represents an improvement among 1,800 contractors and builders compared with a year ago, but the industry still has a high business risk level compared with the general economy.
As the average home price in Israel rose 16.3% in January-October, the payment ethic in the construction industry also improved. The proportion of payments in arrears fell to 16% in January-October (compared with the national average of 12.5%), from 23% in 2009 (compared with the national average of 10.1%).
59% of contractors and builders operate in central Israel, 29% in the north, and 12% in the south. Dun & Bradstreet Israel's database lists 15,000 registered companies with the Registrar of Companies that provide building and contracting services. Most of them are not registered with the Association of Contractors and Builders in Israel and operate without a license. In the past two years, hundreds of contractors and builders have been added to the Dun & Bradstreet Israel database, and the industry's growth rate so far in 2010 is one of the fastest in the past decade.
Dun & Bradstreet Israel will publish its real estate rankings for 2011 next week, where it will release its forecasts for residential prices, analyze the condition of the income-producing real estate market, and review the recovery in real estate markets in other countries.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2010
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