Since taking office in January 2023, Israel’s current right-wing government has overseen a notable decline in land marketing and housing tenders in the West Bank, despite initial expectations of expansion. An analysis of Israel Land Authority (ILA) tenders conducted by the Yesodot Group, which provides financial services to real estate developers, reveals that from January 2023 through September 2026, land for just 3,662 housing units was successfully marketed in the West Bank. This averages to approximately 977 units per year, representing a 38 percent drop compared to 1,578 units marketed in 2022 alone.

The slowdown is not limited to the West Bank. Across Israel, successful tenders for housing units fell by 36 percent, from 53,900 units in 2022 to an annual average of 34,500 since 2023. This indicates that the decline in the settlement housing market partly reflects a broader contraction in Israel’s real estate sector.

Within the West Bank, the distribution of housing tenders is heavily skewed. About 75 percent of the land marketed—2,719 units—was concentrated in Ma’aleh Adumim, with the bulk of these units—2,671—offered in 2025 alone. Outside Ma’aleh Adumim, tenders accounted for only 943 housing units over the entire period, an average of 251 units annually, marking an 84 percent decrease compared to 2022 levels.

Year-by-year, the pattern highlights a sharp dip in settlement activity. In 2023, only 21 housing units were tendered in the West Bank, a dramatic decline from 1,578 units the previous year. Activity increased modestly to 323 units in 2024, then surged to 3,249 in 2025, almost entirely due to Ma’aleh Adumim. Excluding that city, the peak year featured just 578 units tendered.

A senior government official attributed these trends to the current administration’s emphasis on localized or tactical initiatives rather than broad, strategic plans for settlement expansion. The official criticized the government for focusing on micro-level measures—such as managing small-scale agricultural settlements—rather than advancing comprehensive planning, marketing, and development efforts needed to create substantial population growth in the territories.

This official suggested that although conditions appeared favorable, including the involvement of settler politician Bezalel Smotrich as finance minister and a supportive U.S. administration, the government did not capitalize on the opportunity to advance large-scale settlement projects. Instead, it pursued a narrow approach focused on immediate control over territory rather than fostering significant population and construction growth.

One former military figure commenting on the broader strategic context highlighted challenges Israel faces in translating military operations into political achievements, especially amid ongoing conflicts. He noted that current approaches reflect a departure from past strategic assessments that weighed the long-term consequences of military action. The fusion of recent traumatic events and political dynamics, he argued, has eroded military norms and diminished public sensitivity to the war’s human and financial costs.

That observer warned that the government’s pursuit of “absolute victory” in ongoing conflicts risks turning the situation into a prolonged war. He referred to a shift toward aggressive military policies that increasingly target civilian communities near Israel’s borders, a strategy likened to a “Genghis-Khan style” logic aimed at eliminating terrorist threats but potentially fueling endless hostilities.

The military figure also questioned the government’s claims of success amid continued warfare on multiple fronts and rising defense expenditures that could strain Israel’s national resources. He described the current posture as a juxtaposition of perceived regional strength with acute vulnerability, noting the lack of public discourse on how ongoing conflicts might eventually conclude.

Overall, the data and expert assessments suggest that despite a government favorable to settlement expansion, practical results in terms of new housing units in the West Bank have been limited, overshadowed by broader political and security complexities shaping Israel’s current approach in the region.