Gov't, ILA, proceed with plan to flood real estate market

The next map includes land zoned for 4,000 apartments, including land for 1,845 apartments in Tel Aviv and central Israel.

The Ministry of Housing and Construction and the Israel Land Administration (ILA) will this month launch the second stage of their plan to lower housing prices by flooding the supply of land. The next map, obtained "Globes", includes land zoned for 4,000 apartments, including land for 1,845 apartments in central Israel. The first stage only included land in outlying areas, and was only a third the size of the current stage.

Last month, Minister of Housing and Construction Ariel Atias announced the publication of tenders for the purchase of land in "large lots", in an attempt to lower apartment prices nationwide. In practice, the ILA market land zoned for only 5,302 apartments, mostly in outlying areas, including land for 2,105 apartments in Beit Shemesh, and 400 apartments in Yavne, but only 21 apartments in Tel Aviv.

The new stage will include land for 711 apartments in the Tel Aviv District, including 152 apartments in the Large Lot, 21 apartments on Refidim Street in North Tel Aviv, 358 apartments in Holon, 136 apartments in Ramat Gan, and 44 apartments in Bat Yam. Land will be marketed for 1,134 apartments in the Central District, including 610 apartments in Moshav Nehalim in Petah Tikva, 170 apartments in Nahalat Yehuda in Rishon LeZion, and 86 apartments in the Buchman neighborhood in Modi'in.

The extend of land to be marketing in Jerusalem remains open, and this could delay the tenders. The ILA currently plans to market land for 1,045 apartments in Jerusalem, including 345 apartments in the Pisgat Zeev neighborhood, which is politically sensitive as it lies beyond the Green Line. Land for 412 apartments will be marketed on Hebron Road, 158 apartments in the Ramot neighborhood, and 130 apartments in Har Homa. Both Ramot and Har Homa are also beyond the Green Line.

Published by Globes [online], Israel business news - - on October 4, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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