As world leaders debate sanctions to curb Iran’s nuclear programme, hundreds of Israeli families are already installing bunkers in their homes to protect against radioactive fallout from a possible attack.

Thousands of private homes have been equipped with nuclear-proof equipment ranging from air filters to water-decontamination systems. But builders and contractors say that the demand in the past few months for fully fledged atomic shelters has surged, fuelled by speculation that Iran is building a nuclear weapon that it would not hesitate to use against Israel.

Atomic shelters range in price from £70,000 to £500,000. They feature 70cm thick blast-proof doors, ballistic windows, water and air-decontamination systems, which promise to sustain life for up to six months.

Shlomo Yakov, an Israeli industrialist, spent £300,000 on a nuclear bunker for his family at his sprawling seaside villa just north of Tel Aviv. The underground shelter features a master bedroom and children’s room, a decontaminated-water shower and an electrical generator that feeds a flat-screen television, surround-sound system and fully stocked stainless steel fridge.

“The cost is nothing compared to the peace of mind it provides my family,” said Mr Yakov, who has three young children. He does not advertise its existence. “If there was ever a scare, there would be a stampede,” he said.

Fears of a nuclear attack first surfaced in Israel during the Gulf War in 1991. In recent months it has become a national obsession. A recent survey in Ma’ariv, found that two thirds of Israelis believe that Iran, if it develops a nuclear weapon, would use it to destroy Israel.

Collective angst over such a scenario has even seeped into the country’s popular culture: Israel’s controversial entry into this year’s Eurovision Song Contest, Push the Button by the punk band Teapacks, is a cry against nuclear obliteration.

Right-wing Israeli politicians argue that the time for diplomacy is over. Iran could have the bomb by 2009, the country’s chief intelligence officer cautioned in his recent security assessment.

“Iran’s President says time and again he is committed to Israel’s destruction. We have to take those threats seriously, and do everything in our power to avoid it,” said Ephraim Sneh, the deputy Defence Minister, The Knesset has speeded up construction of its own nuclear shelter, built beneath pine-covered hills outside Jerusalem. The bunker will serve as a command post in case of war.

The Government also recently approved construction of a public shelter underneath Jerusalem’s new railway station to accommodate hundreds of civilians. Construction is due to be complete by 2011.

Ahim Torati, one company that specializes in nuclear shelters, has received ten orders to build private bunkers in the past month alone. “You can hear the fear in people’s voices when they call,” said Talia Torati, an employee.

The Israeli Government requires home builders to install blast-proof rooms in residential houses, but so far has stopped short of ordering nuclear shelters, saying that there is no need for public panic.

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