Corona year: 8% drop in construction starts in 2020; Demand – Rising – Real Estate

The year 2020 was the year of the corona, there is almost no industry in the economy that the corona has not harmed – now we can see the damage it has left in the construction industry. In 2020, construction began on 51,600 apartments issued with a building permit, compared to 2019, when construction began on 56,030 apartments; A decrease of 7.8%. In addition, construction of 47,920 apartments was completed in 2020, compared to 2019, when construction of 52,060 apartments was completed; A decrease of 8%. The leading cities in 2020 at the start of construction are: Tel Aviv, Rishon Lezion, Ashkelon, Ramat Gan and Jerusalem.

In the three months November 2020-January 2021 the requested amount of new dwellings was about 15,010 dwellings, an increase of 3.4% compared to the previous three months (August-October 2020). The requested quantity of dwellings consists of 2 data: new dwellings sold (dwelling for sale and for which a contract of sale was signed), and new dwellings not for sale (ie dwellings built for the owner’s own use of the building rights in the land, such as dwelling, purchase group, sheltered housing And more). The requested quantity of new dwellings consists of 79.4% new dwellings sold to the general public, and 20.6% of new dwellings not for sale that have begun construction.

In November 2020, by January 2021, about 11,910 apartments were sold, an increase of 11.7% compared to the previous three months. In the months of November 2020-January 2021, about 12,400 transactions were sold for the sale of new apartments, an increase of 17.7% compared to the previous three months.

The number of new non-sale dwellings that began construction in November 2020-January 2021 stands at about 3,100 dwellings, a decrease of 19.6% compared to the previous three months. After seasonal adjustment, there is a decrease of 13.1% in the same period compared to the previous three months.