Israeli Contractors Urge Government to Re-admit Palestinian Workers
Translated & summarized from Ice by baba
Israeli contractors are advocating for the return of Palestinian laborers for the first time since October 7th, citing the need to revive the struggling construction sector. Real estate companies are offering incentives like zero down payments to boost sales amidst a market crisis. The Ministry of Housing director acknowledged the rental market's collapse and urged lower land prices. Meanwhile, the Tax Authority is considering a new tax on rental income.
The story in 5 lines · by baba
- Israeli contractors are calling for the return of Palestinian workers for the first time since October 7th.
- Real estate firms are offering incentives such as zero down payments to stimulate sales.
- The Director General of the Ministry of Housing acknowledged the rental market's collapse.
- The Tax Authority is reportedly planning a new tax on rental income.
- WeWork has signed a deal to lease office space in Tel Aviv for NIS 180 million.
Amidst ongoing efforts to form a new government, Israeli contractors are calling for the return of Palestinian laborers, a move not seen since the October 7th attacks. Ran Yanai, CEO of C.P. Construction, stated that the next government must take steps to revive the struggling construction sector, emphasizing the necessity of re-employing Palestinian workers. He believes this is crucial for the industry's recovery.
Other industry figures are also pushing for solutions to the real estate crisis. Yehuda Morgenstern, Director General of the Ministry of Housing, urged contractors to purchase land at reduced prices to lower housing costs, though he acknowledged the collapse of the rental market model. Meanwhile, real estate companies are offering significant financial incentives, such as zero down payment options and deferred payment plans, to attract buyers.
Despite the market challenges, some companies are reporting substantial losses. One urban renewal company cited war-related disruptions for a delayed annual report, with the Israel Securities Authority reducing its fine due to the company's financial difficulties and negative cash flow. In other news, the Tax Authority is reportedly planning a new tax on rental income, which is expected to be passed on to tenants. Additionally, significant commercial real estate deals are being finalized in Tel Aviv, including WeWork leasing office space for NIS 180 million.
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