Israel Sees Record Building Permits in 2025 Amid Declining Completions

A new report from Israel's Planning Administration reveals a record high in building permits issued for 2025, with approvals for approximately 84,400 new housing units. This represents an 11.5% increase compared to 2024 and marks the highest number of permits granted in recent years. However, the report also highlights a significant downturn in the number of housing units that actually reached the final completion stage, receiving occupancy permits. In 2025, only 42,696 occupancy permits were issued, a nearly 10% decrease from the 47,415 granted in 2024.

This disparity indicates that while the number of permits is rising, the actual delivery of habitable homes is falling. The Planning Administration attributes this widening gap between permits and completions to the ongoing war, which has led to a severe shortage of construction workers and other logistical challenges, slowing down the pace of actual construction.

Jerusalem led the nation in new building permits in 2025, with 8,444 units approved, an increase from the previous year. Tel Aviv followed with 6,915 permits, then Lod, Haifa, and Bat Yam. Conversely, Tel Aviv led in completed units with 5,684, followed by Netanya, Ashkelon, and Petah Tikva. Jerusalem, despite its high permit numbers, only saw 1,945 units completed.

The report also examined the 'Authorized for Permit' track, a reform aimed at streamlining the licensing process by transferring authority from local committees to certified architects. In 2025, 348 information files were submitted under this track, but only 16 permits were issued and 56 housing units were approved, a negligible amount. The reform, which took effect in late 2022 and became mandatory in November 2024, faces hurdles, notably the requirement for unanimous consent from all landowners, which is hindering its effectiveness.

Furthermore, the report assessed the compliance of local planning committees with legal requirements. While 68% of committees held the minimum required number of plenary or subcommittee meetings in 2025, an improvement from the previous year, approximately 32% still failed to meet this standard. Compliance with monthly licensing meetings was higher, at 93%, but only 45% of committees managed to distribute committee decisions within the legally mandated three days, with many taking significantly longer.