After Months of Freeze: Israel Land Authority Markets Land for Over 22,000 Apartments Nationwide

After a period of stagnation following a dispute with the Ministry of Finance, the Israel Land Authority launched an unprecedented marketing campaign for high-density construction in “Target Price” and “regular public” tenders, alongside tenders for low-rise construction and rental housing. Notable tenders include 4,305 units in Sderot, 2,902 in Ma’ale Adumim, 1,000 in Binyamina, 2,862 in Netivot, and 1,089 in Kiryat Ata. In addition, land will be marketed for the ultra-Orthodox sector in Beit Shemesh and for Arab communities such as Jaljulia.

By Doron Breitman, Nadlan Center

After a long period in which no new land was marketed by the Israel Land Authority (ILA) due to a dispute with the Ministry of Finance, the ILA this week marketed more than 22,000 housing units for high-density construction in “regular public” and “Target Price” tenders, according to a review by the Real Estate Center of tender data published on the ILA website. According to the ILA announcement, over 25,000 housing units were published, some in tenders for low-rise construction under the “registration and lottery” format and others in “rental housing” tenders. In any case, this is an unprecedented volume of housing units marketed in such a short period, made possible after understandings were reached between the Ministry of Finance and the ILA.

The review shows that the Israel Land Authority tenders were marketed over just two days, last Sunday and today (Thursday), with four tenders launched on Sunday and 32 tenders today. According to the data, 13,537 housing units were marketed under the Target Price framework, and the remaining 8,535 units were marketed through regular public tenders. Among the most notable tenders are 4,305 units in Sderot, 2,902 units in Ma’ale Adumim, and 1,000 units in Binyamina – all Target Price tenders. Other significant regular public tenders include 2,862 units in Netivot and 1,089 units in Kiryat Ata.

The published tenders cover the entire country, from Eilat in the south, where land for 132 units was marketed in the Shifulei Ha’Har neighborhood, to Beit She’an in the north, where land for 120 units was marketed under the Target Price framework in the city’s western neighborhood. The land marketing also spans different population sectors, with land offered to the ultra-Orthodox community in Beit Shemesh, where two tenders were issued: one Target Price tender for 424 units and one regular public tender for 300 units. In addition, several plots were marketed in Arab communities, including Jaljulia, where land for 105 units was marketed under Target Price, and Tira, where land for 432 units was marketed under Target Price.

As part of the extensive marketing effort, two tenders were issued in the Ramat HaHayal neighborhood (Arad complex) in Tel Aviv. Both tenders are regular public tenders, with the first for 342 units and the second for 256 units.

Minister of Construction and Housing Haim Katz said this is major news for the Israeli housing market and for apartment buyers. “After months of freeze, and especially after resolving disagreements on roof agreements and reaching understandings with the Accountant General, the Israel Land Authority is accelerating the pace of marketing with tenders to meet the high demand – about 4,000 Target Price units will be marketed as part of the initiative.”

Yanki Quint, Director of the Israel Land Authority: “We continue our efforts to increase the supply of housing units across Israel and wish to see the trend that began in Tel Aviv, following the Sde Dov tenders, expand to other parts of the country. Looking back, it can now be said that our decision to release a large volume of housing units for marketing proved correct and produced positive results. The Authority continues to hold ongoing discussions with municipalities across the country in an effort to reach additional roof agreements that will not only help increase the housing supply but will also improve urban spaces and infrastructure.”

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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