Sharp drop reported in new housing starts

Apartments under construction in the Israeli city of Ashkelon. (Lior Mizrahi/ Flash90)
Apartments under construction in the Israeli city of Ashkelon. (Lior Mizrahi/ Flash90)

Home building in Israel drops by some 25% in the first quarter of this year, according to figures released by the Central Bureau for Statistics.

The report showed that from January to March construction started on 14,981 new apartments, compared to some 20,000 in the same period last year.

Analysts say the drop is a result of the cooling of the real estate market due to significantly higher interest rates in recent months.

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