Treasury’s plan: Foreign contractors & loans to boost periphery construc


Already in the 2024 budget: The program to bring back demand to the southern and northern periphery is currently being prepared by the Treasury, and was distributed yesterday by Ministry Director-General Shlomi Hayazelar for comments from the heads of departments in the Construction and Housing Ministry and the Israel Land Authority, with the intention of including it in the 2024 budget.

The budget framework for the program’s implementation is NIS 1.2 billion ($331 m.) per year. As mentioned, the goal of the program is to lower the prices of new apartments for eligible individuals in the southern and northern periphery. For example, 4-room apartments are expected to cost NIS 800,000 ($220,000), with benefits for two years after the war.

Are foreign construction firms arriving? (credit: REUVEN CASTRO)

The discount on the apartments will be achieved through zero land pricing, with additional subsidies for veterans. It should be noted that zero-priced lands were previously marketed in the remote periphery areas, but they were less popular due to high development fees and construction costs.

Additionally, the program includes a 2% reduction in purchase tax on land for contractors who succeed in building quickly using the expedited planning and building method.

Surprisingly, the program also offers the return of the failed idea of bringing foreign construction companies together with their workers in order to overcome the shortage of available labor. Another idea that was raised is to offer government-guaranteed loans to contractors who struggle to complete the pre-sale stage, in order to stimulate construction.