Jerusalem, 8 June, 2026 (TPS-IL) — The Israeli government today, Monday, approved the proposal to extend the increased benefit for subsidizing development for saturated construction in national priority areas, with a total amount of approximately 300 million Shekels ($102 million) for 2026.
The decision is a continuation of previous government decisions that were intended to support the continuation of land marketing and increasing the supply of housing, with an emphasis on areas remote from demand areas in the center of the country. As part of it, the possibility of deepening the development subsidy in land tenders for saturated construction in national priority areas was extended by an additional 60 days, a step that is expected to promote the marketing of approximately 8,000 additional housing units.
The development subsidy provided by the Ministry of Construction and Housing makes it possible to reduce some of the development costs in land tenders, thereby improving the economic viability of residential projects.
As part of previous government decisions, hundreds of millions of shekels were allocated to subsidize development in national priority areas, with in some cases assistance of approximately 20,000 to 40,000 shekels per housing unit. The move helped to promote thousands of housing units, increase the scope of marketing, and strengthen development in cities and towns far from areas of demand.