Amidar Sells Jaffa Cottage for 2 Million Shekels Despite Planning Restrictions

An Amidar-owned property in Old Jaffa was sold through a tender issued by the Israel Land Authority. The tender attracted ten bidders, with a minimum price set at 688,000 shekels. The winning bid came from Amindav Management and Initiation, which offered 2.01 million shekels, nearly double the average bid and almost three times the minimum price.

The property is a two-level "cottage apartment" covering 99 square meters above ground floor, located near the "Nights of Jaffa" café on Halafanim Street 7, within walking distance of Jaffa's famous clock tower and the nearby beach. Despite the high bid, the price per square meter was about 20,300 shekels, significantly lower than recent transactions in the area, which typically exceed 45,000 shekels per square meter and can reach over 100,000 shekels.

The low price is mainly due to planning and licensing issues common in Amidar tenders. Of the 99 square meters, 61 must be demolished, leaving only 38 square meters legally usable. The roof area of 42 square meters, partly already demolished, must be rebuilt at the buyer's expense. Additionally, parts of the plot are subject to expropriation under approved plans. The winner must also pay 4,000 shekels for registration fees to Amidar and the Israel Land Authority.

Amindav Management and Initiation is linked to the Abulafia family bakery business, with one of its directors, Walid Abulafia, also serving as a director in the family company. The property is located near the well-known Abulafia bakery branch on Yefet Street.

Amidar tenders, regularly published through the Israel Land Authority, offer unique real estate opportunities, often at minimum prices set at 50% of the property's assessed value. However, recent tenders have seen limited success. This Jaffa tender is only the second successful sale out of the last 15 tenders marketed mainly in Tel Aviv-Jaffa and Haifa.