10% rise in building starts in 9 months
Some 66,800 apartments were in active construction at end of September – highest figure since third quarter of 2002
Some 66,800 apartments were in active construction at the end of September – the highest figure since the third quarter of 2002. This is the fifth quarter in a row with more than 9,000 building starts.
The highest number of building starts over this period was recorded in the central district, which constitutes 39% of all apartments, while the Jerusalem district comprises only 7%.
The southern district saw a 48% in the number of building starts, while the district recorded a 21% drop compared to the first nine months of 2009.
Petah Tikva had some 2,730 building starts in the first nine months of 2010 (a 59% rise compared to the same period last year), while Tel Aviv had 1,290 building starts (a 38% rise). A drop in building starts was recorded at the same period of time in Ashdod (21%), Rehovot (20%), Netanya (20%) and Jerusalem (17%).
Compared to the first nine months of 2009, a significant rise in building starts was recorded in Beersheba (5.9 times more), Hod Hasharon (3.7 times more) and Yokneam Illit (3.1 times more).
Contractors speeding up building starts
Yossi Gordon, CEO of the Association of Contractors and Builders in Israel, said in response that the extent of building starts this year is expected to reach 37,000 new apartments.
"We can see that in light of the climax in the market, all construction companies are speeding up the building starts, and companies with land and authorized plans are rushing to build on it."
Gordon added that the main obstacle in the market today was the shortage of foreign workers, which he said did not allow contractors to complete construction fast. As a result, an apartment's average building time is two and a half years.
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