The Israel Land Authority (ILA) has today published one of its biggest 'waves' of tenders, and certainly the most expensive in recent times. The tenders are for 7,159 housing units in Sde Dov in north Tel Aviv. Prior to today the ILA had marketed 2,650 housing units in the Eshkol plan in the southern section of Sde Dov.
Sde Dov is being built following the demolition of Sde Dov airport, which was completely vacated in 2020. In total 16,000 housing units are planned for Sde Dov, a large proportion on state land. The Eshkol plan was approved in 2021 and construction has begun on the first projects in the neighborhood. Now marketing has begun for the two remaining plans in the center and north of Sde Dov, which was approved for deposit three weeks ago by the Tel Aviv-Yafo Planning and Building Committee.
Marketing for 27 areas
The planned marketing is for 27 areas, for housing in high density built-up areas, including rental housing, and special housing combined with commercial areas, schools and kindergartens and other public buildings. All the areas will be marketed in ten tenders, which will close in November.
In August 2021 one of the most prestigious tenders successfully marketed up to that time closed for 1,574 housing units in the Eshkol plan - about 20% of the housing units currently being marketed. That tender was marketed for a total of about NIS 4.626 billion, including development expenses. Among the winners of that tender was Hanan Mor, which recently collapsed, among other things, due to the enormous debt of about NIS 1.5 billion taken after winning the tender, shortly before interest rates began rising. The land mor won was recently purchased by Y.H. Dimri for NIS 1.1 billion.
ILA director general Yaakov Kvint said, "The new tenders in the Sde Dov district are major news for the real estate market and a very important step towards cutting housing prices. Marketing such a large number of housing units in one of the sought-after areas in Israel will provide significant assistance in increasing the supply and an important response to the high demand for housing in general and Gush Dan in particular."
Minister of Construction and Housing and ILA chairman Yitzchak Goldknopf said, "In the housing tenders and the plans for Sde Dov, we had in front of us the goal that they would provide a response to all the populations that make up the mosaic of Israeli society, starting with affordable housing, through housing units for the older population, and on to designated commercial and tourism areas for the needs of the economy. The Ministry of Housing will continue to work to increase the supply of housing units throughout Israel to serve all of Israeli society."
Published by Globes, Israel business news - en.globes.co.il - on September 1, 2024.
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