If the Minister of Finance, MK Moshe Kahlon, gets his way, Israel will open up its residential construction industry to foreign developers. The plan is not without opposition, but the proposal brought before the Housing Cabinet is designed to speed up the construction timetable, getting that new home in your hands much sooner. Currently it takes around 15 years for developers to complete a new neighborhood, during which time construction prices rise, making that new home less and less affordable. The new effort is also intended to improve construction standards. For foreign buyers and olim from overseas, this could be very welcome news.
According to an article today in Globes, foreign developers would function as subcontractors to domestic builders, bringing in their own construction crew. The foreign developers would be allowed to operate in Israel for five years. While working in Israel, these foreign construction companies would be subject to all Israeli laws, including labor and safety.
The proposal has the backing of the Bank of Israel. Proponents highlight the proposal’s impact on improving construction standards, bringing it to a level of efficiency and perfection known throughout the western world. The government also proposes special grants to developers that adopt European construction standards and train their employees on the latest in construction technologies. Also funded will be a center for construction designed to raise the standard of professionalism and improve the overall housing construction industry.