ISRAEL Law and Practice Contributed by: Hagit Bavly and Adi Daniel Zamir, Arnon, Tadmor-Levy
Arnon, Tadmor-Levy 132 Menachem Begin Rd Tel Aviv Israel
Tel: +972 3 608 7777 Fax: +972 3 608 7724 Email: info@arnontl.com Web: www.arnontl.com
1. General 1.1 Main Sources of Law The main sources of real estate law are the fol - lowing statutes: • the Land Law, 1969 (the “Land Law”); • the Planning and Construction Law, 1965; • the Contracts Law (General Part) 1973; • the Contracts Law (Remedies for Breach of Contract), 1970; • the Leasehold and Borrowing Law, 1971; • the Sale Law, 1968; • the Real Estate Tax Law (Appreciation and Purchase), 1963; • the Tenant Protection Law, 1972; • the Pledge Law, 1967; and • the Arrangements Law, formally known as the Economic Efficiency Law (Amendments to Legislation to Achieve the Budget Goals), which is submitted to the Israeli Parlia - ment for approval once a year alongside the Budget Law, and which consolidates legisla - tive changes in various fields, including real estate. 1.2 Main Market Trends and Deals Shortage of residential units has been one of the main challenges of the Israeli real estate market
in past years. The Israeli market began explor - ing the option of construction of long-term lease projects (which is uncommon in Israel), though in the last one to two years this track has been almost totally abandoned. With the intention of encouraging residential construction, tax benefits were given, such as tax benefits to land owners selling their land and where the land is used for construction of resi - dential units within a given (short) period. Addi - tionally, legislative changes occurred in the field of urban renewal, in order to reduce barriers and allow the execution of residential projects. The sharp interest-rate increase, rising inflation and the global economic crisis led to a signifi - cant slowdown in the real estate market over the past year. There has been a reduction in the demand for office and commercial space and for the purchase of residential units, as well as a sharp decrease in construction. 2023 was the weakest year this century for the Israeli real estate market. 1.3 Proposals for Reform As part of the efforts that have characterised legislative processes in the field of Israeli plan - ning and construction law in recent years, many
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