Calcalist, Amitay Gazit, 20.12.2020
A decrease of 9.5% in the number of dwellings whose construction began between October 2019 and September 2020 compared to the corresponding period - between October 2018 and September 2019. According to CBS data, in the 12 months ended in September this year, construction began on 49,810 dwellings, compared to 55,060 dwellings in the 12 months The data show that the sharp decline is a result of the corona crisis.
In the first quarter of 2020, the figures were still relatively high, with construction beginning at 14,308 apartments, but in the second quarter - the peak of the Corona crisis and the first closure period, there was a 31% drop with construction starting at only 9,797 apartments - the lowest quarterly figure since 2012.
This decline is due to a number of factors directly related to the health crisis, including economic uncertainty and the fear of entrepreneurs starting projects, as well as difficulties related to traffic restrictions and social distance that made it difficult to import construction products, enter workers and more.
In the third quarter of the year, there was a recovery in the number of apartments whose construction began - 11,696, but it is still a relatively weak quarter compared to the data of recent years.
In the first 9 months of the year, construction began on 35,800 apartments, the lowest figure since 2014. 9% lower than the number of apartments whose construction began in January-September 2019, and in 15% of the record data recorded in 2016 where in the first 9 months began Construction of a little over 42,000 apartments.
The decline in construction starts in such a complex year is not surprising. The surprise is precisely from the fact that the figure is higher than the gloomy expectations and forecasts of the contractors who predicted that in 2020 only 30,000 apartments will be built, a figure that the housing market crossed in September.
Data on construction starts are the number of dwellings at construction sites where excavation has begun, the data are based on a survey conducted by CBS personnel and therefore the data are often updated upwards a few months after they are published.
On the other hand, construction starts are of projects that applied for a building permit a year or more ago. In the past year, there has been a sharp decline in the number of building permits issued by local committees, a fact that could lead to a further decline in the number of construction starts within a few months.
According to the CBS survey, the leading cities in the number of dwellings whose construction began between October 2019 and September 2020 are Tel Aviv - 3,187 dwellings, as well as Rishon Lezion, Jerusalem, Ramat Gan, Kiryat Gat and Ashkelon, each of which began construction of more than 2,000 dwellings.