Israel Lands Authority Sees Sharp Drop in Land Tenders and Developer Wins in Early 2026

A recent analysis by the Yesodot Group, published in "Real Estate Center," reveals a significant decline in the number of land tenders published and awarded by the Israel Lands Authority (ILA) in the first half of 2026. Only 99 tenders were concluded with results, a 63% drop from 268 tenders in the same period last year, and an 87% decrease compared to 743 tenders in the first half of 2022. This decline has been consistent over recent years, with tender numbers falling steadily from 599 in early 2023 to just 99 in early 2026.

Alongside the reduction in tender volume, the rate of tenders ending without a winner has surged dramatically. In the first half of 2026, 44 out of 99 tenders (44.4%) failed to attract any winning bids, compared to just 0.8% in 2022. Consequently, only 55 tenders were awarded, down from 214 in 2025 and 737 in 2022, marking a 92.5% drop over four years. The number of housing units included in awarded tenders also fell sharply by nearly 50% in early 2026 to 7,664 units, a 57% decline since 2022.

Financially, government revenues from land and development costs in successful tenders fluctuated significantly. After peaking at approximately 14.92 billion shekels in early 2025, revenues plunged by 80.3% to about 2.93 billion shekels in early 2026, the lowest in the examined period.

Yesodot CEO Adv. Eyal Belcher Cohen attributed the crisis to a dual failure: a sharp drop in tender issuance and a rising share of tenders without winners. He criticized the ILA's prolonged management instability and lack of a coherent marketing plan, which hinder market planning and led to unrealistic development costs and premature tender launches. He warned that this could create a future shortage of available land and projects, driving up land and housing prices.

Industry leaders echoed these concerns. Eli Rosenthal, CEO of the Tel Aviv and Central District Builders Association, stressed the ILA's dominant role as the main land supplier and called for a multi-year marketing plan with steady tender releases to ensure market stability. Real estate marketer Shmuel Lehav Zalmanovich highlighted the risk of a future housing shortage and price hikes if the current trend continues, urging the government to maintain a continuous flow of land tenders and projects to avoid market disruptions.