Papal Visit Purim Millennium Snow in Jer. The Tel Aviv boardwalk. At least one American chain is foregoing a lease there due to current tensions. Before the recent escalation of the political situation, analysts were anticipating a recovery in the local real estate market, which took a beating during the last four years of the economic slowdown. If residential building was initially a positive growth factor, now it will probably be flat in 2001.
Households are more pessimistic.
Housing starts, or the number of new homes being built, were estimated at 43,000 for 2000, with a similar figure for 2001, Katz said. Those figures were in line with Israel's moderate immigration rate and the country's natural population growth rate. But with the current unstable political situation and expectations for it to continue for several months, estimates are much less positive. Closed borders mean fewer Palestinian construction workers showing up for work. When they don't show up, the whole process grinds to a halt.