Minister of Construction and Housing Yoav Galant has called on foreign construction companies to build in Israel new housing compounds of 1,000 units and more, in collaboration with local companies, and the Ministry of Housing will ease the requirements for the foreign builders’ integration in the Israeli market, Yediot Aharonot reported Monday. Some of the eased conditions are: the requirement for a company’s annual business cycle was lowered from $500 million to $300 million; the requirement to prove the minimum volume of construction will be spread over five rather than three years.; and building for housing only will be expanded to include proposals for office space construction.
The companies will be required to show that they’ve built at least one 25-story or two 15-story towers outside their own home country.
Dozens of foreign construction companies have already responded with interest to the call, including builders from China, Turkey, the US, Canada, and several European outfits. The Housing ministry plans to accept only two companies from the same country.
“One of the main areas of economic activity in the State of Israel is the construction industry, whose importance is reflected in its significant scope, investments and accumulated capital,” Minister Galant wrote in his ministry’s report, Israel Housing Market Emerging Opportunities, May 2016. “The industrialization and productivity levels in this area are relatively low compared to other sectors of the Israeli economy and worldwide. As a growing state, with one of the highest rates of population growth in the developed world, increasing housing construction capacity is of crucial importance, both as an answer to an immediate need for new homes as well as a contributing factor to the growth of the Israeli economy.”
“The key factor for resolving the housing crisis is a conceptual change in the planning process, the land development and the construction methods. A fundamental change is required, which, at the end of the process, will enable the entire population of the State of Israel to obtain appropriate housing solutions within a reasonable time and at reasonable prices,” Galant wrote.
But Roni Brick of the Israel Builders Association told Yediot that flooding the Israeli construction industry with foreign competition is not the right way to increase production, and that what the field needs desperately is an infusion of foreign labor, not foreign companies.JNi.Media