Israel began major demolition of houses in East Jerusalem and the West Bank this week.
Hundreds of Israeli police and soldiers moved in on the buildings—including some 72homes—early on Monday.
The buildings are in a neighbourhood that straddles East Jerusalem and the West Bank, which have both been under Israeli military occupation since 1967.
The Palestinian Authority, which governs in the West Bank, had approved their construction.
But Israel said the buildings were too close to its separation barrier—the vast wall it uses to pen Palestinians in.