Apartment prices have risen by about 19% in the past year, and this unusual figure is mainly explained by one simple reason: the increase in supply fails to keep up with the rate of increase in demand.
One of the barriers preventing a massive increase in the marketing of land for residential construction is the lack of the appropriate infrastructure.
About 180,000 units are not marketed, and in fact are hanging in the air as a result of a delay in the development of the infrastructures that are a condition for their marketing - according to an internal document obtained by Israel Hayom.
These are essential infrastructures, such as the expansion of a wastewater treatment facility, the establishment of a kindergarten, the establishment of an interchange that will connect the new neighborhood to a main road, and more.
MK Yitzhak Goldknopf, photo: Oren Ben Hakon
There is no one to coordinate
Despite the clear urgency in promoting the infrastructures, their establishment takes a long time due to planning bureaucracy and the lack of budgets.
In the absence of one factor that will coordinate the promotion of the infrastructures and prioritize their establishment, with the aim of solving the housing crisis - a great deal of coordination is required between different government agencies: local authorities, the Ministry of Transportation, the Water Authority and municipal water corporations - and each of these agencies has a different order of priorities.
The result is known in advance: precious time is wasted, and the housing crisis is getting worse and worse.
The other reason for the delay in establishing the infrastructure is, as mentioned, the lack of budgets.
The RMI estimates that approximately 150,000 units are not marketed solely due to a lack of budget for the development of various infrastructures, the investment of which will be translated immediately into the promotion of plans, and in any case the process can last a year or more due to planning bureaucracy.
About 50,000 housing units can be marketed as early as 2023 - if the relevant budgets are allocated.
The lack of a budget may sound absurd, given the fact that only in 2022 the Israel Lands Authority's income from land marketing amounted to approximately NIS 37 billion.
But out of this huge amount - only about NIS 2.8 billion was invested in the development of the infrastructure, and the rest of the income was transferred as every year to the government's uses, such as closing the deficit and reducing the debt, the KKL budget and more.
remove barriers
According to Yankee Quint, director of Rami, "In order to continue the high rate of marketing of the past two years, an infrastructure fund must be established as soon as possible and barriers to tens of thousands of housing units removed." Quint is currently starting the third year of his term, during which he achieved very great achievements.
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