Gaza rebuilding stalls as costs rise, Israeli curbs persist, experts say

Nearly seven months into a fragile cease-fire in the Gaza Strip, Palestinians are making do with limited resources to repair damaged homes and infrastructure, but large-scale reconstruction remains largely at a standstill amid mounting costs and ongoing restrictions.

Despite the scale of destruction, rebuilding efforts remain largely frozen, with experts pointing to Israeli restrictions on construction materials and unresolved political disputes as key obstacles.

A new international assessment estimates the enclave will require $71.4 billion over the next decade to recover.

The final Gaza Rapid Damage and Needs Assessment (RDNA), released last month by the European Union, the United Nations and the World Bank, said $26.3 billion will be needed in the first 18 months alone to restore essential services, repair critical infrastructure and support economic recovery.

It estimated physical infrastructure damage at $35.2 billion, while economic and social losses reached $22.7 billion, with housing, health care, education, commerce and agriculture among the hardest-hit sectors.

Blockade hampers rebuilding

Israel’s war on Gaza since Oct. 7, 2023, has devastated much of the enclave, leaving entire neighborhoods in ruins.

Despite the ceasefire, Mamoun Besaiso, an adviser to the United Nations on Gaza’s reconstruction, said Israel continues to restrict the entry of cement, steel and other essential materials, forcing residents and aid agencies to rely on debris from destroyed buildings.

“The United Nations Development Programme (UNDP) started months ago recycling rubble, and from this recycled rubble we get some construction material. And they use this construction material in repair or not in new construction, repair,” he told Anadolu Agency (AA).

The recycled materials are being used to fix hospitals, schools and water infrastructure, but not for new building projects, he said.

Across Gaza, makeshift schools have been built from metal sheets and wooden pallets, while some universities have partially resumed face-to-face teaching in damaged classrooms or tents.

Existing materials are being used to repair hospitals, schools and water infrastructure, including pipes and wells, but no new large-scale reconstruction has begun, Besaiso added.

Housing crisis deepens

With hundreds of thousands still displaced, shelter remains among the most urgent needs.

A U.N. report estimates that between October 2023 and October 2025, at least 92% of Gaza’s housing units were either destroyed or damaged.

More than 90% of the population has been displaced, while over 86% of the territory has been designated as displacement zones or incorporated into Israeli militarized areas.

Even before the war, Gaza faced a chronic housing shortage due to years of blockade, repeated military assaults and economic stagnation. Around 2.3 million people lived in just 365 square kilometers (140 square miles), making it one of the most densely populated places in the world.

“Now, most displaced people are living in tents … very miserable tents,” Besaiso said.

He noted that the UNDP has managed to bring in a limited number of prefabricated housing units.

“These caravans are much better than tents. They have windows and solar systems,” he said. “But we need more than 40,000 of them, and so far maybe only 2,000 or 3,000 have arrived.”

Some residents whose homes sustained minor damage have begun repairing them independently and moving back in, but large-scale infrastructure needs remain unmet.

In many cases, residents are also resorting to using rubble and even garbage as improvised building materials, Besaiso said.

Political deadlock stalls recovery

Analysts say political obstacles are further delaying reconstruction efforts.

Zaha Hassan, senior fellow at Carnegie Endowment for International Peace, said international attention on Gaza has waned amid broader regional tensions, including the Iran war.

“It’s fallen off the map quite a bit since the start of the Iran war,” she said, referring to declining diplomatic focus on the enclave.

She pointed to the limited progress of the National Committee for the Administration of Gaza (NCAG), which has been unable to operate effectively.

The NCAG, launched in January 2026 as part of U.S. President Donald Trump’s 20-point plan for ending the war, was intended as a transitional body to oversee Gaza’s rehabilitation and governance functions pending the full return of the Palestinian Authority.

“Because of Israeli refusal to allow the NCAG into Gaza, there has really been very little that’s been done – if anything at all,” Hassan said.

She added that frustration is mounting among international stakeholders, with committee officials still waiting in Cairo for permission to enter Gaza.

“Since the ceasefire, we have seen very little willingness on the Israeli side to comply with even the first-phase obligations … including the entry of humanitarian assistance at scale,” she said.

Hassan also cited restrictions at the Rafah crossing, limited medical evacuations and failure to carry out agreed troop withdrawals as key obstacles.

“Really, not much has happened on the Israeli side to comply with phase one,” she said, warning that without stronger international pressure, particularly from the U.S., the situation is unlikely to change.

Besaiso echoed concerns about the political impasse, saying new conditions have further complicated reconstruction efforts. He said demands related to disarmament – not included in the original agreement – have become a major sticking point.

He added that many in Gaza feel increasingly abandoned as global attention shifts elsewhere.

“People in Gaza are very disappointed, extremely disappointed,” Besaiso said. “Everybody is busy with other conflicts … and Gaza is being forgotten.”

As a result, he warned, prospects for meaningful reconstruction remain bleak.

“Israel will not allow reconstruction in Gaza … will not allow the entry of construction material, and will not allow the committee to function,” he said.

DAILYSABAH