The tender for the Israeli Ministry of Construction and Housing's buyer price program will close on March 13. The tender is for 104 apartments in the Neve Zemer neighborhood in the northern part of the city.
Only first-time buyers are entitled to purchase an apartment through the program and they are not entitled to sell it until five years after the building's completion, although it can be rented out for residential purposes. 20% of buyers must be Ra'anana residents and if there are too many applicants a lottery will be held.
With government subsidies on the price that the government sells the land to developers and a tender that requires bids to stipulate the final price of apartments, homs can be bought typically with a 20% discount.
Even so, calculation of all the inputs suggest that prices for a four-room 92 square meter apartment in Neve Zemer within the buyer price program will begin at NIS 2.25 million. A five room 125 square meter apartment will likely cost NIS 2.65 million. These prices reflect a cost of NIS 22,500 per square meter.
Neve Zemer is a new neighborhood north of Weizmann street, east of Kiryat Sara and west of the Rassco neighborhood, which is currently under construction. 3,484 housing units are planned in the neighborhood, so that the 104 apartments in the price buyers program will only make up a very small percentage of the new homes.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2016
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