Adv. Omer Gadish, Head of AYR’s Real Estate and Urban Renewal Department, participated in the annual Duns 100 Real Estate Forum, where leading figures from across the industry discussed some of the sector’s most pressing challenges, including the impact of the ongoing conflict, the interest rate environment and broader market conditions.

During the discussion, Adv. Gadish addressed the issue of delays in the delivery of residential units resulting from the war and the legal implications for developers and contractors.

As he noted, “Israeli courts have already made it clear that a force majeure argument does not provide developers and contractors with an automatic exemption from compensation for delays in the delivery of apartments. Developers are required to demonstrate a direct causal link between the security situation and the actual delay, and to show that they took reasonable measures to mitigate the impact and comply with project timelines.”

He further observed that, “even in cases where the effects of the war were recognised, the relief granted by the courts has generally been partial and limited to the specific period directly affected by the security events.”

Adv. Gadish also noted that “developers and contractors should already be preparing for a significant wave of claims by purchasers and should ensure comprehensive documentation of all war-related impacts on their projects — from labour shortages and supply chain disruptions to Home Front Command restrictions and delays caused by public authorities.”

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