Building starts in Israel are starting to approach the peak of the great wave of immigration from the former Soviet Union in the 1990s. In the twelve months to the end of June 2022, construction began on 72,540 housing units. This is a scale not seen in Israel since 1995. In Tel Aviv and Jerusalem, building starts reached decades-long peaks, according to Central Bureau of Statistics figures.
In the first half of 2022, some 38,000 homes were started, and the approximately 81,000 building permits issued between July 2021 and June 2022 will ensure that the pace of construction will remain high at least for the next year. TAMA (National Outline Plan) 38 continues to be the main basis for urban renewal construction.
The 72,540 homes started between July 2021 and June 2022 represent a 24.3% increase in comparison with the previous twelve-month period. The figure is similar to that recorded in 1995. The all-time record number of housing starts is the 83,500 recorded in 1991. Between 2015 and 2020, the figure was 53,000-57,000 annually.
47.6% of the building permits issued between July 2021 and June 2022 were in the Tel Aviv and Central Districts (24.7% and 22.9% respectively). This is no surprise: several cities in these districts saw their highest numbers of building starts in this period in at least twenty years. First is Tel Aviv, where construction was started of 5,432 homes, 73% more than in the previous twelve months. In Bat Yam, building starts in this period reached the amazing number of 3,431, seven times more than in the previous twelve months, and even cities that have been at the forefront of housing construction years recorded peaks: 3,004 in Rishon Lezion and 2,716 in Netanya.
In Jerusalem, 4,514 homes were started issued between July 2021 and June 2022, 94% more than in the previous twelve-month period, while Bet Shemesh saw a 130% rise over the previous period, with 3,000 homes started, a record.
The numbers reinforce the importance of TAMA 38 in its different versions when it comes to housing starts. In the reporting period, construction began on some 11,000 homes under TAMA 38/2, which covers demolition and rebuilding. Including TAMA 38/1 (reinforcement of existing buildings and addition of extra floors), TAMA 38 accounts for 70% of housing starts nationwide. In the Tel Aviv and Central Districts, the proportion reaches 80%.
Published by Globes, Israel business news - en.globes.co.il - on September 21, 2022.
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