Yehuda Morgenstern, Director General of the Ministry of Housing, addressed the issue of construction projects in central Israel not materializing due to a lack of economic viability. He attributed this situation to the ministry's success in lowering housing prices. Morgenstern also announced that, for the first time, the state will sign a framework agreement for thousands of housing units, including private land. Urban renewal projects, which were economically viable a few years ago, are no longer feasible today, preventing developers from implementing the building permits they have received. This situation highlights the current challenges in the Israeli real estate market, where efforts to reduce housing costs are impacting the feasibility of urban development projects.
