Hershey Friedman, a Canadian billionaire and owner of Israeli real estate giant Azorim, states that rising global antisemitism will drive a significant wave of Jewish immigration to Israel. In a recent interview, Friedman and Azorim CEO Adi Dana discussed the country's housing market, economic challenges during wartime, and the complex bureaucracy hindering development.
Friedman, who transformed Azorim from a struggling company into a firm valued at 4.2 billion shekels, believes predictions of a housing price collapse are a "myth." He points to strong underlying demand, particularly from foreign buyers, as a key factor supporting the market.
Key Takeaways
- Hershey Friedman acquired the real estate company Azorim in 2011 and grew its value from 470 million shekels to 4.2 billion shekels.
- He believes rising antisemitism in countries like Canada will lead to increased Jewish immigration to Israel, boosting housing demand.
- Friedman and Azorim CEO Adi Dana dismiss predictions of falling housing prices, citing market resilience and high construction costs.
- Bureaucracy and labor shortages are identified as the primary obstacles to new construction and economic growth in Israel.
- Friedman supports mandatory military service for ultra-Orthodox men who are not engaged in full-time religious study.
From Meatpacking to Real Estate Dominance
Hershey Friedman, 75, is a prominent figure in North American business and a passionate Zionist. His career began at age 17 in his family's textile business, but he is best known for building North America's largest kosher meat producer, Agriprocessors, and a leading food-packaging company.
His involvement in Israeli real estate began 30 years ago. "I had a teenage son whom I sent to study at a yeshiva in Jerusalem," Friedman recalled. "I used to visit him regularly, and then I thought to myself: You know what? Since you’re already here, you might as well invest in Israel."
The Azorim Turnaround
In 2011, Friedman acquired a controlling 64% stake in Azorim for 300 million shekels. At the time, the company was near bankruptcy, with scattered international investments. Friedman refocused the company's strategy entirely on the Israeli market, divesting from overseas projects and concentrating on domestic development, particularly in the urban renewal sector.
Under his leadership, Azorim's valuation has increased nearly ninefold. The company now has a pipeline of approximately 40,000 apartments, making it one of Israel's largest development firms. Friedman travels from his homes in Canada and Miami to Israel at least once a month to oversee operations.
Housing Market Myths and Realities
Despite ongoing conflict and economic uncertainty, Friedman remains confident in the Israeli housing market's stability. He firmly rejects suggestions that prices are set to decline significantly.
"It’s a myth - it won’t happen," Friedman stated, addressing recent reports of a market slowdown.
Azorim CEO Adi Dana, who joined the company three months ago after five years as CEO of Isras, supported this view. "During a war like this, the fact that the real estate market is still so active is almost a miracle," Dana said. "To see such a small drop in sales volume and for the market to continue functioning so steadily is an extraordinary economic event."
The Core Problem: Construction Costs
Both executives agree that the primary challenge is not a lack of demand but the high cost of construction. Friedman pointed to a severe labor shortage as a major factor.
"In the U.S., in a room the size of the one we’re sitting in, there would be five bulldozers ready to work. In Israel, on an area 10 times that size, there’s only one bulldozer," he explained. This scarcity drives up wages and extends project timelines.
Bureaucracy as a Barrier
Friedman highlighted Israel's complex bureaucracy as a significant deterrent to investment and development. He noted that a project that takes a year and a half to complete in the United States can take five years in Israel due to lengthy permit processes and unpredictable regulatory demands.
Dana added that addressing these production costs is the most effective way to stabilize the market. "Licensing procedures also need to be shortened," he urged. "This is much better than trying to reduce prices through restrictions."
Global Antisemitism and a New Wave of Immigration
Friedman believes that a disturbing rise in global antisemitism will have a direct impact on Israel's population and housing market. He shared firsthand accounts of incidents in his home country of Canada.
"Even Canada - the situation there is very serious. I’m the chairman of a school in our area, and someone shot into its windows twice. In other neighborhoods, Molotov cocktails have been thrown at synagogues," he said.
This climate, he argues, will compel many Jewish families to relocate. "Antisemitism will not disappear. Jews abroad are waiting for the war to end so they can move to Israel," Friedman asserted. "It’s already happening, and with the holidays approaching, we expect sales to rise."
He noted that Azorim's projects in Jerusalem already have waiting lists of American buyers, and many are not purchasing vacation homes but are planning to live in Israel full-time. Dana confirmed this trend, observing that neighborhoods like Arnona in Jerusalem are increasingly populated by English-speaking residents.
Navigating a Nation at War
Friedman, a frequent visitor to Israel for decades, remains undeterred by the security situation. He described the nation's resilience as one of its defining characteristics.
"The beauty of Israel is that even when the country is bombed and the market closes, within hours or days it’s open again and functioning normally," he said. "That’s life here - it’s crazy."
Several months ago, he visited Kfar Aza to witness the aftermath of the attacks. "I wanted to see it with my own eyes, and it was terrible," he shared. "If you don’t see it yourself, just hearing about it isn’t enough to fully connect to the story."
On Haredi Military Service
As a member of the Haredi community himself, Friedman offered a clear stance on the contentious issue of military service for the ultra-Orthodox.
"I believe everyone should serve in the army. Either you study seriously, or you go to the army," he stated.
He suggested a system of accountability, such as attendance tracking in religious study halls (kollels), to ensure that exemptions are granted only to those genuinely dedicated to full-time study. Friedman believes a shift is already underway, noting he sees more Haredi soldiers serving. "It’s happening slowly... I think we’ll see more Haredim in the army. That’s my view."
Ultimately, Friedman's primary wish for the coming year is peace and the return of all hostages. "This is my greatest wish - that there will be peace in Israel. I can’t wish for more than that. That everyone returns to a normal life."
