Massive building of residential projects in dozens of moshavim (co-operative agricultural settlements) will start within six months, mostly in the north and south of the country. This emerges from a survey of 384 moshavim by the Israel Building Center research department.
According to Israel Building Center owner Eran Roles, the survey focused on moshav expansions, and did not include construction data within existing estates. The survey found that 37,100 plots are up for sale under the expansion plan. On average, 96 plots are being offered in each moshav. Roles says that within a few months building will begin on 10,202 plots.
The building surge stems from four factors: there are no more plots in the central and Sharon regions, which has created a demand for plots in moshavim in the north Sharon area; Israel Land Administration fees are low in the north and in the south, as part of a government encouragement program; average prices of plots in the south are $30,000, compared to $200,000 in the central and Sharon regions; the expansion plan is a financial lever to cover the moshavim’s debts.
The survey shows that 231 moshavim are at the pre-building permit stage, planning to start construction in the next two years; 68 moshavim are at the final stages of receiving building permits, in preparation of starting construction; 37 moshavim have already started construction; 22 have completed construction; 10 moshavim are planning high-density building; 16 moshavim are at the infrastructure stage.
Roles says that due to the uncertainty surrounding Israel Land Administration decisions, expansion processes of many moshavim have been delayed. Financing of land development has made it difficult to implement some of the projects.
The survey shows that 25% of buyers of moshav plots are not from moshav families, but families seeking to change their way of life by moving out of the cities into the countryside. The average plot size under the expansion plan is 570 sq.m., minimum size - 400 sq.m., and maximum size - 1 dunam (0.25 acres).
Published by Israel's Business Arena August 8, 1999