Building starts in Israel slump to 4-year low

In the second quarter of 2024, there were 12,900 construction activities in Israel, the Central Bureau of Statistics reports, down 13.6% from the second quarter of 2023. This is the lowest number since the second quarter of 2020, when there were 11,538 construction activities.

In the first quarter of 2024, there were around 16,000 construction starts, so when looking at the situation over a 12-month period – a time frame that reflects less of the effects of the war – things look less dramatic. Between July 2023 and June 2024, construction starts totalled 60,300, down 2.1% compared to the previous 12 months. However, excluding existing apartments demolished and rebuilt (mainly as part of urban renewal measures), construction starts during this period were 55,300. Urban renewal accounted for 30.3% of all construction starts in this period.

Construction finishes in Q2 2024 were down 24% to 12,400 compared to the corresponding period in 2023, although they were higher than the 11,898 apartments completed in Q1 2024. Between July 2023 and June 2024, construction finishes were down 0.8% to 55,800, compared to the previous 12 months.

There were more reassuring figures on the number of building permits issued. In the second quarter of 2024, 16,600 building permits were issued, up 4.7% on the corresponding quarter of 2023 and up 12.4% on the first quarter of 2024. Between July 2023 and June 2024, 73,100 building permits were issued, up 0.7% on the previous 12 months.

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 19, 2024.

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