In 2023, the Israel Land Authority (ILA) sold land for the construction of 93,456 housing units through tenders and tender exemptions. However, only 60,117 projects were actually contracted for construction. This means that more than a third of the housing units sold by the government remained undemanded.
This was reported in the Israel Land Administration's year-end report. Furthermore, when comparing the actual transaction data to 2022, the number of construction transactions closed in 2022 was down approximately 25% from 81,000.
Other data in the report shows that in 2023, ILA sold land for the construction of approximately 39,000 affordable housing units for housing shortages and young people, accounting for 42% of all sales, and in 2022 This indicates a slight decrease from 43%. 46,342 homes were sold as affordable housing.
Even the rental housing sector, which was considered a limited opportunity in 2023 and could have been a good solution for families displaced by war, decreased compared to 2022. Only about 4,000 land bids were advertised for the construction of rental housing. That's a drop of more than a third compared to the approximately 6,191 units sold for this purpose in 2022. This decrease was also recorded compared to his 2021, when 5,898 rental homes were published.
Yitzhak Goldknopf, Minister of Construction and Housing, managed to maintain an optimistic outlook, saying, “Despite high interest rates reaching their peak in nearly 20 years this year and the war that broke out towards the end of the year, the Israel Land Administration has “I made a sales pitch,” he claims. He has nearly 100,000 housing units, which is an impressive number considering the challenges.
“However, we do not rest on our laurels and aim to achieve significantly higher sales numbers next year, with the aim of lowering prices and providing affordable housing for the benefit of all Israeli citizens. “We hope to achieve this,” he said.
ILA Director Janki Quint said: “2023 has been a challenging year for land management as well. Starting with soaring interest rates, falling land prices, expectations for local government elections, and finally the outbreak of war. In the last quarter.
“Nevertheless, the data show that the authority's land management is characterized by flexibility and immediate response to market fluctuations, provides solutions to problems that have arisen and has therefore been able to successfully address existing challenges. “We are presenting this,” he said.
“We hope that the war will end soon so that we can work towards rebuilding the country.As the appointed body responsible for land management, the ILA has an important role to play in supporting the development and revitalization of the economy. I am.”
