Real estate9/3/2026

Review of Discounted Housing Lotteries: Only 37% of Apartments Have Permits

An analysis of projects in the "Apartment at a Discount" program found that building permits had been issued for only 37% of the nearly 70,000 apartments entered into lotteries since 2022. Another 26% received conditional permits, while the remaining projects, including some from lotteries held in 2022, still have no permits.

Key facts

•Program: "Apartment at a Discount"
•Analysis period: lotteries since 2022
•Scope: nearly 70,000 apartments
•Permits issued for 37% of the apartments
•Conditional permits — for 26%
•Publication date: 03.09.2026

What the Review Found

The data were collected by Tal Zecharia, co-manager of the "Mishtaken Hacham" website and manager of a page that tracks discounted housing lotteries. He estimates that years often pass between the apartment lottery and the developer's receipt of a building permit. This is a private analysis, not a court ruling or official data from a government authority.

Why the Projects Are Delayed

According to Zecharia, in the past, under the "Mechir LaMishtaken" program, lotteries were generally held for more advanced projects, and developers had an incentive to begin work more quickly. Today, as claimed in the publication, the state markets lots with problems that may take years to resolve. Zecharia estimates that the wait for a permit and the start of construction takes about three years, after which a similar period may be required for the construction itself.

Not Every Discount Is Equally Worthwhile

Zecharia also draws attention to how the price is determined: the current calculations are based on a market value that, in his opinion, does not always reflect the actual market. During a prolonged waiting period, families continue to pay rent, and over several years these expenses could reduce the actual benefit by hundreds of thousands of shekels. According to his observations, offers in central Israel tend to be more attractive, while projects in the periphery require particularly careful comparison with the open market.

Additional Data and the Ministry's Position

Real estate appraiser Roee Fishman and economist Idan Peleg stated that about 15,500 apartments were included in the August 2025 and May 2026 lotteries, and permit applications had not yet been submitted for 80% of them. According to their data, after an application is submitted, obtaining a permit for a residential project in Israel takes an average of 18–24 months. The Ministry of Construction and Housing stated that it continuously monitors the projects, assists in advancing the issuance of permits, and works to remove obstacles; the ministry also warned that including recently marketed projects could distort the overall picture.

What this means for you

Winning a discounted housing lottery does not guarantee that construction will begin in the near future. Participants should take into account the stage of the licensing process, the possible years of paying rent until occupancy, and the actual gap between the discounted price and the price of comparable housing on the open market. For applicants near the end of the selection list, another factor is the uncertainty regarding the available apartments and their prices.

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