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Falling Between The Chairs Israel today

2021-02-02T11:56:15.486Z


More than 11,000 housing units, which were supposed to go to marketing tenders in the periphery, are stuck because there is no budget | Real Estate Magazine


More than 11,000 housing units, which were supposed to go to marketing tenders in the periphery, are stuck because there is no budget

  • The decline in marketing and construction starts could result in shortages

    Photography: 

    Envato Elements

Produced by the Department of Special Supplements

The State of Israel falls (again) between elections, between governments, between a confused policy of yes reduced price, no price per occupant, yes aid, no subsidy.

All the cards are going to be shuffled, and who will pay the price?

Those young veterans who contributed to the country and wanted to start from the starting point of their parents, who at the time were entitled to a score.

The numbers are alarming.

Very worrying.

It is not enough that Minister of Construction and Housing Litzman warned of a clear price increase, now CEO Yair Pines comes and reveals that 11,335 apartments that were expected to go out to marketing tenders for stuck contractors because there is no government and no budget and the right hand does not know immediately left.

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And where are the delayed housing units?

True, where they are most needed.

In Dimona, tenders in Mamshit and the New Dawn neighborhoods - more than 1,000 apartments.

In Ashkelon, 2,100 apartments in the wine city.

In Afula 304 apartments.

In Safed, 800 apartments.

In East Acre, 747 apartments.

In Eilat, at the airport, 270 apartments will be vacated.

In Tiberias 888 apartments and more and more.

That is, in the soft underbelly of Israel.

Do not deviate from the rules

Why is everything delayed?

Because a price-per-tenant plan has been canceled, but a new plan is not approved, because there is no budget, and there is hardly a government.

Yair Pines, Director General of the Ministry of Housing, writes to the Directors General of the Prime Minister's and Finance Ministries after the Ministry of Housing's request to transfer the grants and subsidize development as part of the government housing program is reduced.

A hearing in the Ministry of Justice, chaired by the Attorney General, rejected the request to raise the decision for government approval, on the grounds that due to the fact that the issue is horizontal, it is not possible to deviate from accepted rules and allow a discussion regarding decisions that are not technical decisions.

At the same time, the Government Spokesman acknowledged the importance and urgency of the decision and the need to bring it before the government for approval.

Pathetic, sad, oppressive - everything is true and accurate.

This is an engine that works by providing incentives that include development subsidies for developers on the one hand and grants for apartment buyers on the other.

Past experience shows that without providing the incentives the developers do not submit bids and the tenders fail.

This is a national activity, as the policy has continued the actions that the government has taken in recent years to enable the development of the periphery, through increasing the economics of real estate auctions.

This is a proposal that was coordinated between the professional bodies in the Ministry of Construction and Housing, the Israel Land Authority, the Ministry of Justice and the Ministry of Finance on its wings, prior to the announcement of the election, and there is even an election team approval from the Ministry of Justice to bring the decision to government.

The data does not lie

No matter who you vote for, the data indicates a decline in marketing data and construction starts, leading to a growing annual gap between the supply of housing units versus demographic growth.

These trends, sad to say, are intensifying in light of the existence of 3 election campaigns, which did not allow for significant decision-making, and against the background of the corona plague, which exacerbated the challenges in the industry and even diverted the housing market from the public agenda.

We see all this in the rise in housing prices, which has recently been reported in the CBS publications and the results of recent real estate auctions, which also indicate a future rise in prices. There may be a reality of a shortage of apartments and a rise in housing prices, which will lead to a further burden on households in Israel.

To illustrate the depth of the problem, the CEO emphasizes, in the absence of a valid decision, no tenders will be closed, which are due to close these days, including 1,800 units, and the publication of tender brochures for more than 11,000 units will be delayed. D. over the next two years.

So who said only the corona is harmful?

Here's another reason to worry.

Produced by the Department of Special Supplements

Source: israelhayom

All news articles on 2021-02-02

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