There is concern that the upcoming Israeli elections will significantly reduce construction and lead to further increases in housing prices across Israel.
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.”
Nitzan said the interior minister was currently in Morocco to sign an agreement to bring about 3,000 foreign workers from Morocco into the construction industry, and the industry fears that the new political situation will lead to the halting of this agreement.
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.