"The shortage of foreign workers is still severe. Real estate prices will continue to rise"

Eldad Nitzan, chairman of foreign labor corporations in the construction industry at the Chamber of Commerce: "Despite the decision of the Ministry of Housing and Finance to bring another 15,000 foreign workers to the construction industry to Israel, in practice only a few hundred have arrived in the last two months."

Walla!

Real Estate

22/12/2021

Wednesday, 22 December, 2021, 09:19 Updated: 09:28

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Eldad Nitzan, chairman of foreign labor corporations in the construction industry at the Chamber of Commerce, appealed to Minister of Construction and Housing Zeev Elkin, Finance Minister Avigdor Lieberman and Interior Minister Ayelet Shaked, demanding immediate action to implement the decision to bring another 15,000 foreign workers to the wet industry Despite the decision to expand the circle of foreign workers, according to Nitzan, in practice in the last two months only a few hundred have arrived in Israel.

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At this rate, 2022 will also be tough for buyers.

Eldad Nitzan (Photo: Yachz)

Nitzan points out that a major reason for the increase in housing prices in 2021 by about 10% is the severe shortage of foreign workers, which creates a major delay in the delivery of apartments and the inability to meet the plan to start in 2022 - construction of about 80,000 new housing units.

"Unfortunately, if you do not take immediate action by the government to bring another 15,000 foreign workers into the construction industry as decided and increase by 90% the quota of foreign workers in the industry, in 2022 housing prices will rise at a rate similar to 2021," Nitzan said. "In the construction industry, about 16,500 foreign workers, and if about 30,000 foreign workers are employed in the industry, in 2022 the price of apartments is expected to fall by about 3% in the Tel Aviv and Gush Dan areas and by about 6% in the periphery."

Nitzan claims that the employment of about 30,000 foreign workers in the wet works in the construction industry, works not performed by Israeli workers, will also lead to a reduction in the wages of foreign workers and will help contractors lower construction costs.

This is in light of the fact that today, due to the shortage of foreign workers, the contractors pay these workers huge salaries. "

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