Israel to Offer 600 Discounted Apartments in Tel Aviv Tender

The Israel Land Authority (ILA) is launching two tenders in Tel Aviv's Ramat Hachayal area next month, offering approximately 600 housing units for sale and rent at discounted prices. This initiative aims to increase housing supply and potentially influence market prices, though the ILA has faced political instability regarding its directorship, leading to a decrease in general construction land tenders.

The tenders are for a new residential neighborhood within the Ramat Hachayal employment zone. The first tender includes three sites for 342 apartments, with a central site designated for 222 units. The second tender covers two sites for 256 apartments. A significant portion, 15%, of the total 598 units will be designated as "affordable housing," primarily for reduced-price long-term rentals.

Minimum bids for the tender sites are set between NIS 15-20 million, excluding VAT and development costs. The planned neighborhood will feature mixed-use buildings for residential, commercial, and employment purposes, alongside public spaces and a park. Its proximity to public transportation hubs is intended to encourage its use.

Recent sales data in Ramat Hachayal show considerable price variations. A new boutique building on Olei HaGardom street saw three-room apartments selling for NIS 52,000-57,000 per square meter (approximately NIS 4.3-4.4 million), while five-room apartments averaged NIS 47,000 per square meter (around NIS 6.41 million for 134 sqm units). Rental prices for larger four to five-room apartments range from NIS 12,000-14,000, with three-room apartments renting for NIS 8,000-9,000.

The ILA tenders are seen as a positive development, indicating the state's continued involvement in the free housing market, despite a general decline in such tenders. The tenders are scheduled to close on October 12.