The Tel Aviv District Court ordered Elad Israel Megurim HaHadasha to pay compensation totaling over NIS 8 million to 21 apartment buyers.
The buyers purchased apartments in Jerusalem and received them in 2014. In subsequent years, defects were discovered in the apartments and common areas, mainly serious moisture problems caused by water penetrating through the building’s exterior cladding.
The court accepted the position of the plaintiffs, according to which the poor quality of construction and the scale of defects caused reputational damage to the building, affecting the cost of apartments even after the defects were eliminated.
In this regard, the apartment owners were awarded 4.83 million shekels in compensation for the decrease in the value of the apartments in addition to 2.5 million shekels for the cost of repairs, 715 thousand shekels for moral damages, 50 thousand shekels for defects in the elevator and 80 thousand shekels for defects in the parking lot.
In addition, the developer will be required to pay the landlords’ legal costs.