Azorim CEO responds: "15 cancellations? We delivered over 1,000 apartments"
CEO Adi Dana addresses the report regarding the wave of deal cancellations. According to him, "it is less than 0.8%, this is a routine standard deviation." He also commented on the impact of financing benefits.
The report on the wave of real estate deal cancellations caught some construction companies unprepared. It turns out that some companies claim that the cancelled contracts were transferred to other tenants and the same apartments were sold, but in the case of Azorim, 15 cancellations were recorded, 7 of them in Tel Aviv.
In the company, they claim that these figures do them an injustice. Adi Dana, the company's CEO, stated: "The rate of contract cancellations presented in the periodic report is negligible and is not material in relation to the total volume of deliveries."
Recall that according to the Ministry of Finance report on a wave of real estate deal cancellations, 15 sales transactions worth nearly 57 million shekels were cancelled — about 3.8 million shekels per average apartment including VAT. 7 of the contracts were cancelled in the Frankfurt Boulevard project, where buyers were given the right to cancel the contract. The average price of an apartment stood at 4.25 million shekels, compared to about 3.47 million shekels in the corresponding period last year. This does not mean that prices have skyrocketed, and it is probably due to the mix of apartments and projects.
Dana adds that "in the past year, the company recorded deliveries of over 1,000 housing units, compared to only 15 cancellations. Of these, 7 cancellations resulted from the exercise of a contractual option due to a specific delay in receiving a building permit in a specific project." Buyers had an option in the contract, according to which if a building permit was not received within a certain time, they could exit it. It is possible that some of those buyers would not have bought the apartment for economic reasons.
"It is a cancellation rate of less than 0.8%," Dana clarifies. "This volume of cancellations reflects a routine standard deviation in early transactions ('on paper') over a horizon of about 4 years, which in many cases stems from changes in the personal circumstances of the buyers."
The Ministry of Finance forgot to mention an important fact: in some cases, most of the cancelled deals have already "rolled" on and the apartments were sold to other customers. For example, the Kata Group company, which had 7 deals cancelled in the quarter, has already sold 5 of those apartments — and at higher prices. These data can also be found in the reports of companies like Hagag Brothers and Israel Canada, which sold the cancelled apartments to other customers.
Regarding financing benefits, he added: "It is important to emphasize that the company's financing campaigns are accompanied by strict underwriting processes, so we do not identify them as a factor driving cancellations, and this is also in the challenging macro environment characterized by industry uncertainty."
There are also bright spots regarding Azorim: the company's net profit jumped by 160% in the second quarter to 54 million shekels; the gross profit margin in the second quarter of 2026 rose to 29% compared to 23.6% in the corresponding quarter, and the gross profit margin from apartment sales rose to 27.3%. The expected gross profit from projects currently under construction and marketing in the next four years stands at about 1.6 billion shekels.
