Tel Aviv, a city in urgent need of urban renewal, is witnessing an increasing number of developers abandoning projects due to economic unfeasibility. High construction costs and strict municipal policies, particularly regarding the number of permitted floors, deter developers from continuing projects, even in previously profitable areas. This situation leaves many residents without adequate protection against missile threats. Developers are now turning to peripheral regions offering better profit margins. Construction costs in Tel Aviv are significantly higher than elsewhere, and current market conditions, combined with strict bank profitability requirements, further complicate the situation. Abandoned projects also pose challenges for residents, who often face unfinished projects or must accept financial compromises to see them completed. Experts suggest dynamic contractual mechanisms to adjust developers' profits and residents' compensations based on market fluctuations.
