Housing Minister: Young couples our priority

Ariel Atias: Investors are the main buyers of apartments, and if young couples have to compete against them, it creates a problem. At the "Globes" Real Estate Conference in Tel Aviv today, Minister of Housing and Construction Ariel Atias promised to continue the massive marketing of land for housing, in order to increase the supply of homes and lower prices. "Young couples are the top priority," he said, adding that Israel could either change direction, or make things worse.

"During 2010, we undertook a number of measures whose effect will not be felt immediately, but over the year, we will see their impact. The main thing is to increase the housing supply. It should also be remembered that the low interest rate environment, which affected the housing market, also hurt young couples," said Atias.

"It should be remembered that investors are the main buyers of apartments, and if young couples have to compete against them, it creates a problem. Early last year, we set a target for the Israel Land Administration to market land for 30,000 housing units. We exceeded the target and reached 34,000 apartments. It is necessary to increase the quantity, but it's not easy. We encounter barriers and foot-dragging, which delay things."

Atias promised, "In 2011, our goal is to break another record. Last week, the Central Bureau of Statistics reported a 10-year peak in housing starts. The land we marketed in 2009 played a large role, and we can expect that housing starts in 2011 will be even greater accordingly, but this is still not enough for us."

Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2011

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