ILA issues tender for over 7,000 Sde Dov homes

The Israel Lands Administration today published one of its largest “waves” of tenders, and certainly the most expensive in recent times. The tenders are for the construction of 7,159 housing units in Sde Dov, north of Tel Aviv. Before today, the ILA had marketed 2,650 housing units in the Eshkol plan in the southern part of Sde Dov.

Sde Dov was built after the demolition of the Sde Dov Airport, which was completely evacuated in 2020. 16,000 housing units are planned for Sde Dov, a large portion of them on state land. The Eshkol plan was approved in 2021, and construction has begun on the first projects in the neighborhood. Now the marketing of the two remaining plans in the center and north of Sde Dov has begun, which were approved for deposit three weeks ago by the Tel Aviv-Jaffa Planning and Building Committee.

Marketing for 27 regions

The marketing plan includes 27 residential areas in densely populated areas, including rental housing and private housing integrated with commercial areas, schools, kindergartens and other public buildings. All areas will be marketed through ten tenders, which will close in November.

In August 2021, one of the most prestigious tenders successfully marketed to date closed for the construction of 1,574 housing units in the Eshkol Plan – about 20% of the housing units currently being marketed. This tender was marketed for a total amount of about NIS 4.626 billion, including development expenses. Among the winners of this tender was Hanan Mor, which recently collapsed, among other things, due to the enormous debts of about NIS 1.5 billion that were taken on after winning the tender, shortly before interest rates began to rise. The land Mor Won was recently purchased by YH Dimri for NIS 1.1 billion.

“The new tenders in the Sde Dov area are important news for the real estate market and a very important step towards reducing housing prices,” said Israel Land Authority Director General Yaakov Kvint. “Marketing such a large number of housing units in one of Israel’s most desirable areas will provide significant assistance in increasing supply and provide an important response to the high demand for housing in general and for Gush Dan in particular.”

“In the housing tenders and plans for Sde Dov, we had the goal of providing a response to all the population groups that make up the mosaic of Israeli society, starting with affordable housing, through housing units for the elderly, and ending with commercial and tourist areas dedicated to the needs of the economy,” said Construction and Housing Minister and Chairman of the Israel Lands Authority Yitzhak Goldenbeff. “The Housing Ministry will continue to work to increase the supply of housing units throughout Israel to serve the entire Israeli society.”

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 1, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.