Israel Sees Record Building Permits Amid Sharp Drop in Occupancy Certificates

Israel's Planning Administration reported a record high in building permits issued for 2025, with approximately 84,400 new housing units approved. This represents an 11.5% increase from the 75,700 permits issued in 2024. However, this surge in permits contrasts sharply with a significant decline in the number of housing units that reached the final stage of receiving occupancy certificates, which allow for actual habitation.

In 2025, only 42,696 occupancy certificates were granted, a 10% decrease from the 47,415 issued in 2024. This indicates that while the number of approved projects is rising, the actual availability of ready-to-occupy homes is shrinking, with the gap between permits and final certificates widening.

Jerusalem led in approved building permits with 8,444 units in 2025, followed by Tel Aviv with 6,915. Conversely, Tel Aviv topped the list for occupancy certificates, with 5,684 units, while Jerusalem lagged significantly with only 1,945. Other cities leading in occupancy certificates included Netanya, Ashkelon, and Petah Tikva.

The report also examined the "Authorized for Permit" reform, designed to expedite licensing by transferring authority from local committees to certified architects. In 2025, this pathway saw 348 information files submitted, but only 16 permits were issued, approving just 56 housing units, a negligible number compared to national figures. The reform, which took effect in October 2022 and became mandatory in November 2024, faces challenges, including the requirement for unanimous consent from all landowners, suggesting a slow adoption rate.

Furthermore, the report highlighted compliance issues among local planning committees. While 68% met the legal requirement of holding at least 12 plenary or subcommittee meetings in 2025, a substantial 32% failed to meet this minimum. In licensing matters, 93% of committees held at least one monthly licensing meeting, a slight decrease from the previous year. However, only 45% of committees adhered to the legal deadline for disseminating decisions within three days, with a significant portion taking much longer.