Decline in residential construction: "There will be a shortage of apartments, the risk in the industry is increasing"

The Marker, Hadar Horesh, 16.08.2020

"Data from the Central Bureau of Statistics show a sharp decline in the number of construction starts and an expected shortage of apartments," said Raul Srugo, president of the Builders' Association of Builders. According to the Central Bureau of Statistics, in the first half of 2020 there was a decrease of 41.6% in residential construction.

This is a higher rate than previously heard in the industry, as the construction industry was deviated from the closure provisions during the Corona period and developers continued to work even when most of the economy was shut down. However, the entrepreneurs suffered from disruptions at work in the face of a shortage of manpower. Some of the workers were absent due to school closures, some were absent due to fear of infection and many Palestinian workers preferred to remain in the Palestinian Authority.

According to Srugo, "the decline was caused by a continuing shortage of manpower, a slowdown in the issuance of building permits, restrictions on bank credit in the face of rising risks and the contractors' decision to reduce their activity in the face of uncertainty in the economy."

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