"The war has accelerated the cost of living – and the government is unprepared": State Comptroller Matanyahu Englman opened today (Sunday) the national conference on Haredi real estate, led by Mishpacha newspaper and Nadlan Media, currently taking place in Jerusalem. In his speech, he addressed the cost of living and housing. According to him, "This issue, which is critical for every citizen in Israel, has not received the proper attention since the beginning of the war – even though during this period, the cost of living has risen significantly."
The comptroller noted that his office is currently examining how the state is dealing with the shortage of foreign workers, particularly its effect on labor-intensive industries such as construction. "The absence of foreign workers increases construction costs and may lead to the employment of illegal laborers – a security and economic risk alike," he warned.
The Deal Shaking the Market: 80:20 Under the Microscope
Later in his remarks, Englman revealed that the State Comptroller’s Office is in the midst of a comprehensive investigation into contractors' financing campaigns – especially the 80:20 model, in which the buyer pays only 20% of the apartment's price at the time of purchase and the remainder upon delivery.
The comptroller noted that this issue also appeared in a report issued by his office titled “Aspects of Taxation on Real Estate Transactions,” and emphasized that such promotions may have a tangible impact on the housing price index. According to him, the office is examining how the government supervises the marketing models promoted by contractors and the level of risk to which buyers are exposed.