Economy
Construction starts in Jerusalem fell 30%, in Tel Aviv jumped 20%
After years of sharp growth in the number of approved programs and permit scope, recent quarters have seen a slowdown and in the second quarter there was even a 10% decline from the corresponding quarter last year
· TheMarker. Photo as published in article
Israel's construction starts map is flipping: In the 12 months ending June, construction starts in Jerusalem fell to 5,440 apartments, a 30% decline, while in Tel Aviv they jumped 20% to 7,611 apartments, against a national decline of 7% to 76,000 apartments.
According to data from the Central Bureau of Statistics released Thursday, in the 12 months ending June approximately 76,000 apartments began construction in Israel, a 7% decline. In the second quarter of 2026, approximately 17,900 apartments began construction, a 10% decline from the corresponding quarter in 2025, and excluding demolitions that's approximately 16,400 net apartments.
Jerusalem recorded the sharpest decline among major cities: construction starts fell from 7,788 apartments to 5,440 apartments, a 30% decline. In Ashdod there was a 54% decline and in Beit Shemesh a 71% decline. By contrast, in Tel Aviv construction starts jumped 20% to 7,611 apartments, in Herzliya there was a 174% increase, in Ashkelon a 165% increase, in Haifa a 93% increase and in Kiryat Gat more than doubled.
About a quarter of construction starts were in the Central District, Tel Aviv District 23% and the Southern District 18%. Almost half of apartments under active construction are concentrated in the Tel Aviv and Central Districts. The inventory of apartments under active construction stands at approximately 217,200 apartments, an 8% increase, and average construction time extended to 37.3 months from 36.3 months.
According to the report, approximately 22,500 apartments, nearly 30% of all construction starts, are in urban renewal: approximately 17,700 apartments built after demolishing an existing building and approximately 4,790 apartments in urban renewal programs. Meanwhile, construction permits were issued for 83,300 apartments, a 2% increase, and the number of apartments whose construction was completed in the second quarter fell 14% to approximately 13,400.
