Data from the Central Bureau of Statistics indicate a new record in the time required to complete the construction of an apartment in Israel. Between 1995 and the end of 2024, the duration increased by 12.9 months: From an average of 21.4 months in 1995 to 34.3 months today. It is important to emphasize that this refers to the period from laying the foundations until the physical completion of the building and does not include the planning stages, licensing, or obtaining a Form 4 – stages that, according to industry sources, significantly extend the actual waiting time until occupancy.
The increase in construction time has significant implications for the housing market: New housing units enter the market more slowly, which slows the growth of supply relative to demand and puts continued pressure on housing prices – especially in high-demand areas. Additionally, the long construction period raises project costs, increases financing and labor expenses, and reduces its economic feasibility for the developer.
Before Blaming the Officials
Attorney Roy Alkalay, partner at Eli Toussia-Cohen & Co., believes that alongside the well-known barriers, the developers’ own workflow should also be examined. "It’s easy to blame bureaucracy, but in practice, many delays start with poor planning, lack of readiness, or misalignment with local policy," he says. "When partial documents are submitted to the committee, mismatched reports, or requests for significant deviations, the delay is predictable."
According to him, one of the main points of failure is actually the contract with the residents: "When there is no contractual mechanism requiring the developer to meet schedules, including deadlines for submitting plans, threshold conditions, and progress in permits, the project may be pushed aside in favor of other developments. The result is prolonged uncertainty and erosion of trust."
A Method That Works: A Field Example
Alkalay points to the "HaAchlama 5" project in Jerusalem, where his firm represents the apartment owners, as an example of a different approach: "Thanks to tailored planning, ongoing coordination with authorities, and clear control mechanisms, the plan was approved within only 16 months, and the permit application was quickly finalized afterward. This was not luck, but proper management of each stage."
The Bottom Line: Certainty Instead of Intentions
To truly shorten timelines in the industry, Alkalay believes a combination of efforts is needed: Professional and adapted planning, contracts that create operational commitment, and effective regulation including a uniform set of documents, digital submission with built-in oversight, and reinforcement of personnel standards in planning reviews.
"The message is clear," he concludes, "when residents know what is happening at every stage, the developer is committed to progress, and the authority can make decisions on time, projects do not have to drag on for years. They can advance at a reasonable pace, for the benefit of all parties in the industry."