This is the dramatic moment a home owned by Palestinians in Israel was demolished by Israeli authorities on Monday December 27, leaving 16 people homeless.

The three-storey residential building in the Al-Issawiya, or Isawiya, neighbourhood of East Jerusalem was sealed off from its Palestinian tenants allegedly for being constructed without a permit.

Video taken on December 27 shows armed officers surrounding the building before a bulldozer tore it down. A family of 16 was displaced following the incident.

Several women were seen breaking down in tears as other stood on, being held back by the security forces.

Locals reportedly confronted the police but failed to stop the demolition. No injuries have been reported.

The incident lead to increased tensions in the region following clashes with Israeli troops on Christmas Day evening in which one Palestinian suffered a gun shot wound at least seven others were injured.