Ayelet Shaked Predicts Future Israeli Housing Shortage
Translated & summarized from Bizportal by baba
She cited rising construction costs and a low number of land tenders by the Israel Land Authority as key reasons for the anticipated deficit. The conference will also cover politics, the economy, and the stock market.
The story in 4 lines · by baba
- Ayelet Shaked predicts a future housing shortage in Israel due to rising costs and fewer land tenders.
- The Israel Land Authority manages 93% of Israeli land, impacting future housing supply.
- Urban renewal projects have recently matched housing demand, but this is changing.
- The Bizportal Economic Conference will also feature discussions on politics and the stock market.
With a significant political background, including past roles as Justice Minister and Interior Minister, Shaked is expected to discuss Israeli politics, the economy, and the real estate market.
Her remarks will focus on the housing market, including residential properties, offices, and server farms, a sector Kardan is involved in and which has seen substantial investment due to AI demand. Shaked noted that while apartment supply, largely driven by urban renewal projects, had matched demand in recent years, this trend is reversing. Rising construction costs and a low number of land tenders issued by the Israel Land Authority (ILA) are contributing factors.
Shaked estimates that Israel will face a significant housing shortage in the coming years. Although there is currently a substantial supply of around 85,000 apartments, a decline in new construction starts will impact future inventory. The long lead time between land tenders and completed apartments means that the current low number of tenders could result in a future supply deficit.
The ILA manages approximately 93% of the country's land, making its tender issuance crucial for future housing construction. The conference will also feature discussions on the stock market, with participants including Yuval Steinitz and prominent investment experts.
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