Tel Aviv's Ramat Hachayal Neighborhood to Add 600 New Apartments

Approximately 600 new residential units are slated for construction in Tel Aviv's Ramat Hachayal neighborhood, a significant addition to an area with limited new housing supply. The Israel Land Authority is marketing land in the Arad complex, located between Arad and Raul Wallenberg streets, through two tenders. The first tender includes 342 units across three sections, and the second comprises 256 units. Both tenders are set to close on October 12, after which developers' bids will reveal the price they are willing to pay for state land in this sought-after northern Tel Aviv district.

The development extends beyond residential buildings, covering about 63 dunams and incorporating nearly 200,000 square meters of commercial and employment space, public areas, a park, and public buildings. Ramat Hachayal, known for its offices, tech companies, restaurants, and Assuta Hospital, will gradually transform into a mixed-use residential and commercial zone. The plan includes buildings up to 10 stories high, alongside residential towers reaching approximately 30 stories and employment towers up to 40 stories, with ground-floor retail.

Of the roughly 600 apartments, 15% (about 90 units) will be designated for affordable housing, primarily for reduced-price rentals. An additional 5% (around 30 units) are allocated for long-term rentals. In total, about 120 units will be available for rent, with the remaining 480 units sold on the open market. The unit mix also deviates from typical construction in northern Tel Aviv, with an average apartment size of 85 square meters and approximately 30% of the units measuring between 40 and 65 square meters. This focus on smaller apartments aims to lower the overall purchase price, a key barrier for buyers in Tel Aviv.

Transportation infrastructure is a key component of the plan, with the Green Line of the light rail planned along Raul Wallenberg Street and a planned Metro Line M3 station near Arad Street. This is particularly important for Ramat Hachayal, which has historically faced limited public transport access and traffic congestion. Recent transactions in the neighborhood suggest prices could range from approximately 50,000 to 55,000 shekels per square meter. A 60-square-meter apartment could cost between 3 to 3.3 million shekels, and an average 85-square-meter unit might range from 4.25 to 4.7 million shekels, excluding additional costs.

The tenders' minimum bids start at around 15.6 million shekels, potentially rising significantly if developer competition is high. This will also test developers' market expectations, with high bids suggesting confidence in future price increases, while moderate bids would reflect the current market's caution and the need for competitive pricing. Rental prices in Ramat Hachayal are already high, with three-room apartments renting for 8,000-9,000 shekels monthly and larger units fetching 12,000-14,000 shekels.