Contractors Survey: Jerusalem and Tel Aviv Lead, Ramat Gan Trails
A recent survey of contractors and developers by Globes and the Contractors Association reveals that Jerusalem and Tel Aviv, Israel's largest cities by population, also lead in new construction permits and contractor satisfaction. This marks the second year for the survey, presented at the Israel Real Estate Conference.
Haifa also shows a significant improvement in its ranking, a welcome change after a period of perceived unresponsiveness to developers. Petah Tikva ranks highly on a crucial parameter for developers. In contrast, Bat Yam, a top performer last year, has seen a substantial decline.
The survey assesses local authorities based on transparency, reliability, speed, efficiency, convenience, and service. It underscores the critical role of local government in addressing the housing crisis, given their increasing power and the government's perceived weakness.
While Jerusalem still leads in program advancement speed and municipal serviceability to developers, Tel Aviv has surpassed it in transparency and reliability. Haifa ranks third in transparency, reliability, convenience, and serviceability, a notable rise after years of stagnation in planning and construction.
Ramat Gan, however, is singled out as the most obstructive city, ranking first for delays in construction permits and for being least transparent and reliable. This aligns with the mayor's platform to moderate construction, particularly urban renewal, which has strained infrastructure. Ramat Gan's construction permit numbers for early 2025 to March 2026 place it tenth, significantly behind Jerusalem and Tel Aviv.
The survey also noted a concerningly low response rate from contractors and developers, with only 159 participants, a third of last year's number. This is interpreted as a red flag regarding the current difficult market conditions.
