This represents an inflation-adjusted price rise of 10.5%, including a 19.14% increase in development costs.
Contractors yesterday won tenders to acquire land for 500 housing units in the city of Modi’in. The average price of land for a housing unit, according to the results of the tender, is $3,755 (including VAT). This represents a 20% decrease in the prices of land at Modi’in.
The decrease in land price is significant in comparison to the results of a July ‘96 tender for 726 housing units, for which the average price of land for a housing unit was $4,692.
In spite of the decrease in land prices in the city, this is an inflation-adjusted price increase of 10.5% in comparison to July, due to a 19.04% increase in development costs.
The development cost in this tender is $25,000 per unit, as opposed to development cost in the July tender of $21,000 per unit. Therefore, the average price of land for a housing unit in the present tender, including development cost, is $28,755, in contrast to $25,692 in the previous tender.