Atlit homes overlooking sea to cost NIS 880,000

Atlit project

Israel's Ministry of Housing says the buyers price tender is offering apartments at 25% below the market price.

Another buyer fixed price tender has been successfully completed, with the Israel Land Authority tenders committee today announcing the winning bids for all seven sites. The tender was published for a total of 352 housing units on the coastal ridge in Atlit. According to the bids by the contractors and developers, a 100-sq.m. apartment can be sold to those eligible for the buyer fixed price plan at an average price of NIS 880,000, including VAT, and a 120-sq.m. apartment can be sold for NIS 1.05 million, including VAT.

The square meters listed do not include an additional 10 sq.m. per apartment for a balcony, parking, and storage space. This means that the average price for all the bids will be NIS 80,000 higher than listed above, i.e. NIS 960,000 for a 100-sq.m apartment and NIS 1.13 million for a 120-sq.m. apartment.

The winning companies are America-Israel Investments and Etz Hashaked, which jointly won three lots zoned for 152 housing units (Etz Hashaked also bid by itself, and won three additional plots zoned for 152 housing units), and Aviv Construction and Development which won a single site zoned for 48 housing units.

A comparison of the maximum price with the winning bids in the tender shows that the discounts of the developers and contractors on the maximum price varied between 8% and 13.5%. These discounts are larger than those in previous tenders in other locations, in which the discounts were sometimes extremely small. The average discount for all of the sites was 10% of the maximum price, varying between NIS 7,770 per sq.m. and NIS 8,156 per sq.m., not including VAT.

Commenting on the results, Minister of Finance Moshe Kahlon said, "The plan continues to yield real results and hope for young people and people without homes; buyer fixed price is bringing them closer to their dream of an apartment. We are continuing to work with all our might on more tenders to market tens of thousands of apartments all over Israel. We plan to further increase the state's participation in tenders in outlying areas, and to allocate additional percentages for the benefit of local residents."

Minister of Construction and Housing Yoav Galant said, "The buyer fixed price plan continues to deliver the goods. Young couples and demobilized soldiers can select a home at a reduced price from a range of areas in Israel, in various types of towns and villages, depending on what they want. Buyer fixed price will make their dreams a reality."

In the context of the remarks by Kahlon and Galant, it is important to note that while the tenders do reflect a discount on the market price, estimated by the Ministry of Finance as 25%, this is only a beginning; the apartments will be ready only in three years. It is also possible that apartments smaller than 100 sq.m. will be built, making the average price for all the apartments lower, or that apartments larger than 120 sq.m. will be built, making the average price higher. Furthermore, the apartments must meet the binding specification devised by the Ministry of Construction and Housing, which the contractors and purchasers cannot change.

Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Atlit project
Atlit project
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