Reality Group Real Estate has today announced that it has purchased 44 dunams (11 acres) of land in north Herzliya for NIS 205.5 million. The land bought by Reality Group's fifth fund which was raised last year has huge potential in one of Israel's most expensive and sought after regions, although there are many obstacles before the fun's grandiose plans can be fulfilled.
Reality Group bought the land from Keren Hayesod, which includes three lots east of Kanfei Nesharim Street, which will be part of the 3006 national outline plan for north Herzliya being promoted by the National Planning and Building Commission.
The new neighborhood in north Herzliya is planned to cover 2,158 dunams (539.5 acres) between Kanfei Nesharim Street in the west, Jewish Brigade Street in the south and Road 531 to the north and east. 10,000 new homes are planned for the district.
With easy access to Road 531 and the Ayalon highway and near a planned Metro station on the M1 line, the neighborhood will also be close to Reichman University. This is one of the largest stretches of available land in Herzliya and is likely to have huge demand as in Glil Yam in the south of the city.
Reality Group's deal reflects a price of NIS 4.6 million per dunam (1,000 square meters). Market sources say this is a low price for the area with some recent deals fetching up to NIS 8 or even 9 million per dunam. At the moment the land bought by Reality Group is still zoned for agriculture and its value will jump when it is rezoned for construction. When that happens the land could be worth between NIS 10 and 20 billion.
Meanwhile plan 3006 is far from being realized with many obstacles to be surmounted, with many ownership and planning problems that must be resolved before final approval to rezone the land is given. Reality Group will be required to work in close cooperation with Herzliya Municipality to promote the plan.
Published by Globes, Israel business news - en.globes.co.il - on August 20, 2024.
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