Israel is moving forward with construction projects on contested land after a U.N. vote last week upgraded Palestinians to state status within the world body.

Palestinian officials say the construction will destroy any hopes for a Mideast peace deal. But Israel says the Palestinians already undermined peace talks by convincing the United Nations to recognize a Palestinian state.

Jewish settlers in the West Bank, known biblically as Judea and Samaria, say they support Israel's decision to build thousands of new homes on Israel's land.

"There are people who say we shouldn't live here which would make it the only patch of earth which is forbidden to Jews, most of us don't agree. We believe we have the right to live here," Israeli Shai ben Tekoa said.

"The world begins to criticize. It's hypocritical, it's wrong and we believe we have the right to live here," Israeli Josh Hastan said.

Critics contend the construction would cut off east Jerusalem from the West Bank. The Palestinians are trying to claim all that land as their own.

Read more on why this area is so critical to Israel, here.