Daniela Paz Erez –Guiding the world of real estate in Israel
“I founded Paz Group 25 years ago,” says Daniela Paz-Erez, founder and CEO of her eponymous firm, “and over the years, our goal has been to influence the Israeli real estate market, the quality of life, and the future of Israelis living in this country.” By all accounts, Paz- Erez has succeeded. The Marker, one of Israel’s leading business magazines, wrote of Paz-Erez,
“She affects the lives of all Israeli citizens without ever running for public office, and her counsel accompanies almost every government program.”
What is the secret to Paz Group’s success? “We provide a comprehensive, holistic solution for the real estate field, through different professions consulting in the areas of economics, appraisals, planning, engineering – every aspect of the process from planning through construction,” explains Paz-Erez.” Paz Group advises clients in the business and private sector and works closely with numerous government ministries and local municipalities. It is comprised of four departments – research and consultancy, planning and engineering, financial oversight, and real estate appraisal. Paz Group conducts and participates in a wide range of research studies, analyzing market trends, technological developments, and the needs of different demographic groups
In recent years, residential real estate prices have risen sharply, and as one of Israel’s top real estate authorities, Paz-Erez explains some of the causes: “Israel is the fastest-growing country in the world. We need 50,000 units per year, and we can build that number, but there is a gap of 100,000 units due to the housing shortage that dates back a decade or more that cannot be narrowed easily. The shortage of supply naturally creates an increase in prices. There was a two-year hiatus with little government activity in this area because there was no government, and budget and regulatory decisions were not made. We see the result – very little marketing of land, a decline in the number of approved plans for zoning, a slowdown in the number of building permits – this has all caused a slowdown in the flow of construction for the residential market.” In addition, explains Paz-Erez, very low interest rates doesn’t create a cooling-down of housing prices.
Paz-Erez says that the fact that Israel now has a functional government that passed the State budget, along with the Economic Arrangement Law (“Hok Hahesderim”) provides stability and is a positive development for the real estate field. While the government has been active on several fronts in an effort to increase the amount of residential units, Paz-Erez says that other alternatives need to be considered to alleviate the housing crisis, including a major expansion of rental housing in Israel.
The past two years of living with the corona pandemic, says Paz-Erez, can be divided into two parts. During 2020, says Paz-Erez, the real estate market experienced a slowdown, and Paz Group staff worked from home or in hybrid arrangements. During the second part, dating from January of 2021, after the vaccine became available, the real estate market reawakened, including residential, urban renewal projects, and office real estate, which had been largely written off. The Paz Group is now working using a hybrid model.
When asked of her hopes for the coming year of 2022, Paz-Erez says, “As far as the state is concerned, I hope that the government will do the work that is needed so that the real estate market will receive the regulatory answers to what is needed to help solve difficulties that the market is experiencing and will also help local municipalities. We hope that the market will return to normal.”
As to the Paz Group and her field of expertise, Paz-Erez is a great believer in technology. The field of real estate planning and advising, she says, is using conservative and outdated tools. “I very much hope that our activities to incorporate more technology and innovation to the field of consulting and will become accepted and will improve the entire industry.”
Paz-Erez suggests that young people who want to advance in the real estate field need to possess two qualities – perseverance and professionalism. “The real estate profession requires a great deal of deep understanding that cannot be acquired overnight,” she says. “It requires perseverance. Don’t jump from position to position or job to job. Be a professional and always think a few steps ahead. Stay updated in your field, and don’t let up. Continue to learn.”
Daniela Paz-Erez has succeeded in her goals, and when asked how she accomplished them, she answers, “If you set goals for yourself, and direct yourself in accomplishing them, which is what I have tried to do for the past thirty years – to lead, to change, to influence, in a very specific area and in a professional manner – if you work hard, you will succeed.”
This article is taken from The Jerusalem Post Annual Executive Magazine 2021-2022. To read the entire magazine, click here.
This article was written in cooperation with Daniela Paz Erez