According to a research carried out by TheMarker, a considerable slowdown in construction activity in Israel recorded in 2015, continues in 2016, Haaretz reports on Monday.
Before that, over the period between 2010 and 2014, there was a dramatic increase in Israel’s construction activity.
This year, the pace of housing construction has slowed significantly and there is already a 10% reduction in the number of completed apartments.
As director of the Israel Builders Association, Eliav Ben Shimon, told Haaretz, “the total investment in the construction industry constitutes 9.6% of Israel’s gross domestic product, but the state is far from exploiting the possible growth potential”.
Eliav Ben Shimon claims that it is overregulation that should be reconsidered. He provided an example that building an apartment usually takes 28 months, what, in his opinion, is “an unreasonable figure”.