ILA opens tenders for 4,600 Sde Dov homes

Two weeks after the Israel Land Authority published tenders for the construction of 7,100 housing units in the Sde Dov area of ​​Tel Aviv, three tenders were opened yesterday for developers to build 4,613 housing units. Two of the tenders are located in the central part of Sde Dov and one in the northern part of the area.

The Tel Aviv-Yafo Local Planning and Building Committee approved the plans for the areas put up for tender a month and a half ago, and the tenders are scheduled to close in early November.

At the beginning of September, the Israel Lands Administration published 10 tenders for 27 plots, meaning that there are still seven more tenders that have not been opened. Most of the remaining tenders that will be opened are for private housing, including long-term rentals and sheltered housing, although there are also plots for high-density housing. The remaining seven tenders are expected to be opened in the coming weeks and will also close at the beginning of November.

According to marketing data for projects in the Eshkol Plan in the southern part of Sde Dov, apartment prices per square meter range between 70 and 80 thousand shekels per square meter, meaning that an apartment with an area of ​​100 square meters costs between 7 and 8 million shekels.

The three tenders opened yesterday were for the construction of 2,606 housing units on seven plots of land in the central section of Sde Dov, 1,737 housing units on ten plots of land in northern Sde Dov, and 270 housing units in the central section.

If we add up the minimum prices for all the plots in the three bids, plus the development costs that each winning developer must pay, the total comes to NIS 2.5 billion – the minimum that is expected to enter the state coffers from these three bids alone, provided that all the plots are successfully marketed. But the revenue potential is clearly much higher than that.

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 19, 2024.

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