The latest tender from the Israel Land Authority on land at former Sde Dov airport in North Tel Aviv, for the construction of 241 housing units, has been won by a bid of NIS 654 million, despite estimates that it would go for a much higher sum.
The previous tender for land last August went to a bid of NIS 4.4 billion, reflecting a price per housing unit of NIS 2.8 million, before development costs - six times higher than the minimum required bid.
The latest bid won by Claude Nachmias's Nof Ironi Development Co. reflects a price of NIS 2.71 million per housing unit before development costs, a high sum by any means, but lower than last August's tender. Nachmias's bid was only NIS 85 million above the minimum set of NIS 569.6 million. The average bid was NIS 634 million and only three bids were received compared with 52 bids last summer including an average of 11 bids for each lot.
However, some land appraisers have suggested that the low price relates to the more complicated land rights on the lot marketed yesterday, which is close to government land for public and commercial buildings, rather than market trends.
Published by Globes, Israel business news - en.globes.co.il - on March 22, 2022.
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