Are Israeli elections going to harm the construction industry?

There is concern that the upcoming Israeli elections will significantly reduce construction and lead to further increases in housing prices across Israel.

By JERUSALEM POST STAFF

JUNE 22, 2022 17:31

Updated: JUNE 23, 2022 14:51

View of a costruction site in the central Israeli city of Be’er Ya’acov, February 22, 2022 (photo credit: YOSSI ALONI/FLASH90) — View of a costruction site in the central Israeli city of Be’er Ya’acov, February 22, 2022

(photo credit: YOSSI ALONI/FLASH90)

Going to elections will seriously harm the construction industry, Eldad Nitzan, chairman of the Foreign Workers’ Manpower Corporations in the Construction Industry at the Chamber of Commerce, said.

"There is a great concern that...going to new elections will stop the bringing in of about 10,000 new foreign workers into the construction industry, a move that will significantly reduce construction starts to about 40,000 new housing units in the coming year instead of the 70,000 new units planned for construction."

He also said it will lead to "an increase in housing prices by about 20% during 2022/23."

Eldad Nitzan, chairman of the Foreign Workers’ Manpower Corporations in the Construction Industry at the Chamber of Commerce (credit: CHAMBER OF COMMERCE)

The shortage of about 15,000 foreign workers in the construction industry in Israel will lead to a situation in which housing prices in Tel Aviv will reach about NIS 100,000 per square meter, Nitzan concluded.