Apartments whose construction has begun by district.
2022 (Photo: LMS)
The CBS review published today is consistent with the public real estate companies' reports to the stock exchange. The CBS data published today shows that in the fourth quarter of 2022 there was a 23% decrease in the number of apartments that began construction, this compared to the corresponding quarter of 2021. While in the quarter In the last quarter of 2022, the construction of 14,661 apartments began, in the last quarter of 2021, the construction of 18,959 apartments began.
Looking at the past year, the forecast is relatively encouraging, and the data shows that there was an increase in construction starts at a rate of 5.3%, so that in 2022 the construction of 67,070 apartments began.
In the issue of building permits, there was also an improvement in the past year, during which building permits were issued for 77,690 apartments, an increase of 5.2% compared to 2021, while the total number of apartments for which permits were issued in 2022 shows that approximately 46.1% were in the Central and Tel Aviv districts - at a rate of 24.2% and 22.0%, respectively.
The leading cities in 2022 in terms of construction starts are: Tel Aviv-Jaffa, Jerusalem, Bat Yam, Beit Shemesh, Rishon Lezion, Ashkelon, Netanya, Petah Tikva and Beer Sheva.
The data also shows that the cities in Israel that recorded the highest rate of decline in the scope of apartment construction are Herzliya - a decrease of 48.7 percent from 1,163 apartments whose construction began in 2021 to 597 apartments in 2022;
Nahariya - a decrease of 47.5% - from 1,192 apartments in 2021 that began construction to 626 in 2022;
Kiryat Ono - a decrease of 41.6% from 1,155 apartments in 2021 to 674 in 2022;
Ashkelon - a decrease of 40% from 4,096 apartments in 2021 to 2,446 apartments whose construction has begun;
Bnei Brak - a decrease of 38.7 percent from 1,888 apartments to 1,157 apartments in 2022;
Rehovot - a decrease of 31.8% from 797 apartments in 2021 to 547 in 2022;
Holon - 24.8% decrease, Beer Yaakov - 16.6%, Afula - 15.8% decrease.
A jump of over 300% in construction starts (Photo: Imaging - 3Division)
Who are the cities of the future?
The data shows that in 2022 the city of Lod recorded the highest jump in the rate of apartment construction starts at a rate of 394.4% from 306 construction starts in 2021 to 1,513 in 2022;
The city of Kiryat Gat also recorded a significant jump of 203.9% from 464 that began construction in 2021 compared to 1,410 apartments in 2022;
The city of Sderot takes the third place on the list and has a 112% increase in apartment construction starts from 356 apartments in 2021 to 761 apartments in 2022.
After it, in fourth place - the city of Kiryat Malachi with a jump of 110.2% from 303 apartments in 2021 to 637 apartments in 2022.
The city of Bat Yam ranks fifth with an increase of about 99% from 1,581 apartments in 2021 to 3,158 apartments in 2022;
The city of Rosh Ha'Ain follows with an increase of about 96% from 483 in 2021 to 950 apartments in 2022;
Hod Hasharon with an increase of 89%, and Nof HaGilil with an increase of 85.2% from 318 apartments built in 2021 to 589 in 2022.
The construction data shows that 65.4% of the apartments whose construction began were built for the purpose of sale, of which approximately 14.8% were government subsidized.
A quarter of the apartments (about 24.1%) were built as part of urban renewal, of which about 73.6% were part of TAMA and evacuation-construction.
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the main barriers
The CBS tables show that despite an increase in construction starts in several municipalities, the general increase is moderated due to a lack of land, which explains the increase in apartment prices last year by about 20%. Among the
significant barriers found in the report is the lack of land available for construction ( about 28.1%), delays in obtaining permits (about 26.2%).
However, compared to 2021, there has been an improvement in the position of managers in the construction industry towards these indicators.
In total, it also appears that in 2022 the construction of 51,930 apartments was completed, an increase of 10.5% compared to 2021. The average construction time of a building (weighted by the number of apartments in it) is 33.1 months.
At the end of 2022, the number of apartments under active construction amounted to approximately 166.1 thousand apartments.