Israel Land Authority Stagnates Amid Political Infighting, Halting Housing Lotteries

The Israel Land Authority (ILA) is experiencing a significant slowdown in marketing land for housing construction, a critical factor in increasing the national housing supply. This stagnation is attributed to internal political struggles over the appointment of a permanent director for the authority, with the position remaining vacant for nearly three-quarters of the year. The ongoing dispute involves Minister Haim Katz, who reportedly opposes Yehuda Eliyahu for the role, and the Ministry of Finance, particularly figures close to Bezalel Smotrich, who are said to favor Eliyahu.

This leadership vacuum has led to a drastic reduction in land tenders. In August, only seven tenders were closed, and the results of some are still pending. A planned tender in Acre for approximately 800 housing units in September was canceled. For the upcoming week, only one tender is scheduled, and it is for a single housing unit in Acre. This lack of activity occurs despite expectations of rising housing demand as interest rates are predicted to fall below 3% in the coming year.

The appointment process itself is also delayed, with the selection committee yet to interview all candidates, including Eliyahu. The appointment is now anticipated to be postponed until the end of the month, meaning the ILA will complete three quarters without a permanent director. If a new director is eventually appointed, it is expected to take considerable time for them to acclimate, potentially leaving the authority functioning inefficiently for an entire year.