Israel plans to boost construction of houses to stabilise prices

WCN Editorial Team 13 Jun 2022 MIDDLE EAST BUILDINGS

The government of Israel plans to boost construction of houses to stabilise increasing housing prices as demand outstrips supply, reported Reuters.

Through a joint plan by the finance, interior, and construction and housing ministries, the country intends to commence construction of 280,000 housing units by 2025, or 70,000 on average a year as against around 55,000 a year over the past decade.

Construction and Housing Minister Zeev Elkin stated that the several incentives imply a loss of around $5.9bn to the lands authority, which earmarks land to developers.

At a press conference on Sunday, Elkin said: "The plan is not a one-step magic solution. (But) we believe (it)... will stabilize Israel's housing market."

Parts of the proposal need parliament approval.

The proposal also includes measures such as reducing red tape and constructing more housing units for rentals.

This is the latest move by government to restrict housing costs, with earlier ones failing to stabilise prices.

Citing data from the Israeli Central Bureau of Statistics, Finance Minister Avidgor Lieberman at the news conference said that it takes double the time to build an apartment in Israel compared with US and UK.

While the mortgage interest rates have touched the rock bottom, housing prices have grown more than twice since 2010, with last year alone recording a 16% rise.

Rents have seen double digit rise, contributing to inflation.

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Image: The country intends to commence construction of 280,000 housing units by 2025, or 70,000 on average a year. Credit: Pexels from Pixabay.

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