An urban renewal project in Petah Tikva is at risk after Katteh Real Estate informed residents it could not proceed due to a "lack of economic viability." Construction costs have surged significantly, while apartment prices have not kept pace, reducing profitability to just 2%. This situation reflects a broader crisis in Israel's urban renewal sector, where developers struggle to secure bank financing and are asking residents to renegotiate contract terms. Residents, often elderly and living on pensions, find themselves in a bind, unable to meet additional financial demands. The power imbalance between developers and homeowners is criticized, with calls for fair compensation if projects fail. The debate highlights the challenges of urban renewal in Israel, where developers' and residents' interests frequently clash.
