Following the latest pledges by the Housing Ministry, "Globes" lists ten promises the government has broken in the housing market.
"NIS 250 million will be allocated for the purchase of new apartments for public housing and NIS 750 million will be allocated for expediting construction," declared Minister of Housing and Construction Ariel Atias last week, after his party, Shas, secured the money in exchange for supporting the government's austerity measures.
This sounds like a breakthrough; for years the government has not bought public housing, but sold publicly-owned apartments to their tenants.
However, the public ought to return to these promises in a couple of years, to see whether they have been met. Below is a list of Prime Minister Benjamin Netanyahu government's ten broken promises in the housing market:
- Approval of a plan for one million housing units within a decade, made my Shas chairman and Minister of Interior Eli Yishai in October 2011. He has since cut the target by 70%.
- To market land for 3,840 apartments, including in Tel Aviv, made by the Ministry of Housing in February 2012. To date, tenders have been published for lots zoned for 2,220 housing units.
- Tenders for 4,200 affordable and rental apartments to be published within a week, made by the Ministry of Housing on July 26. To date, tenders have been published for 2,029 apartments.
- Tenders for 3,400 student dormitories, within 10,000 rooms, to be published during 2012, made by Atias in April 2012. To date, tenders have been published for 400 student dormitories at the Jordan Valley College.
- Grants for first home buyers in the periphery, made by Atias in June 2011. The Ministry of Housing has not published how many grants have been issued.
- Increase the housing supply from the current inventory, in order to lower prices. Regulations by Yishai in December 2011 to subdivide apartments and encourage the sale of apartments used as offices have had no effect.
- Increase quotas of foreign construction workers from 3,000 to 8,000 by 2014, made by the cabinet in July 2011, has not been carried out.
- Oust investors from the real estate market by raising the purchase tax on apartments for investment and a temporary exemption on the betterment tax for sellers of these apartments. In reality, investors have returned to the market.
- Reform of planning and building laws, a personal promise by Prime Minister Benjamin Netanyahu, to expedite the sale of land and shorten procedures. In practice, land sales by the Israel Land Authority are down, and the reforms are stuck.
- Repeated promises to lower home prices. Home prices fell 3% in the past year.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012