In common parlance, settlements in this region are understood as Jewish housing in the West Bank as opposed to Jewish housing within the green line. This differential is accepted by everyone including Israel because Israel's entitlement to the land is at best disputed and considered by most to be illegal. When the Palestinians build, they are simply doing so on land where they are entitled to live. So, according to common usage, they are not building settlements.
Police disperse hundreds in brawl in Kafr Manda, northern Israel (Haaretz)
from the article: Palestinians to launch 6-month initiative to restart talks with Israel
'I am ashamed that I saw injustice and never did anything about it,' Reinhold Hanning tells German courtroom.01:17 30.04.16 | 1 comments