Developers Secure Land for 997 Apartments in Yokneam Illit
Translated & summarized from Ice by baba
Developers have secured land for 997 new apartments in Yokneam Illit through a recent tender. Companies like A.I. America Israel and Shi Hai will build the units, with land costs averaging NIS 540,000 per unit. The project is part of the "Price Target" program, with estimated apartment prices around NIS 1.7 million. Future lotteries will prioritize reservists and disabled individuals, allocating 75% of units to them.
The story in 5 lines · by baba
- 997 new apartments will be built in Yokneam Illit following a land tender auction.
- Several companies, including A.I. America Israel and Shi Hai, won plots in the tender.
- Land costs averaged NIS 540,000 per unit, with A.I. America Israel paying NIS 70 million for its parcel.
- Apartments are expected to sell for around NIS 1.7 million, significantly below market rates.
- Future lotteries will prioritize reservists and disabled individuals, allocating 75% of units to them.
Yokneam Illit is set to receive a substantial influx of housing with 997 new residential units following a land tender auction. The Israel Land Authority announced the results, with several development companies securing plots to build in the area. Among the winners are Shabiro, A.I. America Israel (which acquired the largest parcel for 224 apartments), Shi Hai, A.B. Rimmonim, Malaga Or, and a consortium of three developers: Schak Group, M.Y. Or Pisgot, and R.D. Yessodot Zion Management.
A.I. America Israel will pay approximately NIS 70 million for its land, with an additional NIS 61 million for development costs. This amounts to about NIS 540,000 per housing unit. Shi Hai, planning to build 144 units, will pay NIS 493,000 per unit. On average, developers paid around half a million shekels per unit for the land, a price considered high for the periphery but reasonable for Yokneam Illit and its surroundings.
The tender is linked to the "Price Target" housing program, which aims to offer subsidized apartments. An appraisal indicated that the price per square meter in the area, including VAT, is around NIS 22,824. Since the price without VAT is below NIS 20,000 per square meter, Yokneam Illit qualifies for the program. In a previous lottery, apartments were sold for NIS 17,402 per square meter (excluding VAT), approximately NIS 2,000 less than the current estimated market price with VAT.
Future lotteries under the "Price Target" program will prioritize reservists and disabled individuals, with 75% of apartments allocated to them. This means those not serving in the reserves will have a lower chance of winning. It is estimated that apartments in this new project will cost around NIS 1.7 million each, significantly less than the NIS 2.25 million estimated by appraisers and the NIS 22,000-23,000 per square meter currently seen in surrounding projects. The article clarifies that Yokneam Illit and Yokneam are distinct localities, with Yokneam Illit being the larger city.