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Mr. Castaing limited construction spending to $100 a square foot -- the same as in Chrysler's assembly plants -- leaving the bulk of the money for science equipment.
Zoning and height restrictions limit constructions in the city centre from being more than 99m high.
Ministers have also relaxed planning rules limiting construction on greenfield sites.
Efforts to limit construction, critics say, can affect all types of housing, from apartments to mansions.
"I want you to ask any of you to imagine that you would limit construction in your own capital.
Then Venice is an island, or rather a series of islands, which inevitably limits construction and expansion — and affects prices.
Some of Mr. Netanyahu's more moderate ministers have long advocated limiting construction to the large settlement blocs.
It is only this limiting construction which saves the statute from the constitutional challenge that it is overly broad.
Other factors that limit construction, says Rob Dietz, chief economist of the National Association of Home Builders (NAHB), include the shortage of construction labor and rising costs.
In some ways, he said, the recent slump has helped the industry, by limiting construction of new hotels and by pushing the chains into some serious cost-cutting.
"It is just impossible and unacceptable that people try to impress us that we should limit construction in Jerusalem," said Benny Begin, a senior cabinet minister.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com