Calcalist, Amitay Gazit, 30.12.2020
The construction companies clearly mark the areas of demand: a scorching failure of tenders for residential construction in Dimona, Kiryat Bialik and Yeruham. On the other hand, there is a surge in demand for plots in Ashkelon, and a nice success in the tender that closed on Monday in Beer Yaakov.
In recent hours, the Israel Land Authority has begun publishing the first results of the flood of tenders that will close this week, shortly before the start of 2021. At this stage, results of tenders for the free market and not entitled to price per occupant, or in its new name housing at a reduced price, have been published. The competition in the tenders was for the highest payment for the lease of the land.
So far, the state's efforts to market plots in the remote periphery have failed. In Dimona, a tender for the construction of 324 apartments was closed, in the heart of the city of Kiryat Bialik a tender for the construction of 450 apartments, and in Yeruham 118 apartments. But no company has submitted a bid in these tenders.
On the other hand, in two plots in Ashkelon where together the possibility of building 180 apartments, a total of no less than 58 bids were submitted. These two plots were won by Orot Gat after its bids for the lease of the land were the highest, and hundreds of percent higher than the valuation of the government appraiser.
In one plot with rights to build 72 apartments, the company will pay NIS 21 million for the land and another NIS 12.7 million for the development costs. This is when, according to the appraisal, the value of the land is only NIS 3.2 million. The average of the 24 bids submitted for the lease of this plot was NIS 6.7 million.
In the other lot, it is possible to build 108 apartments, the company will pay NIS 33 million, while according to the appraisal, the value of the land is NIS 9.8 million, and the average of the 33 bids submitted was NIS 13.7 million.
Praszkowski won the tender to build 100 Be'er Ya'akov apartments and will pay NIS 67 million for it, 55% higher than the appraisal according to which the value of the plot is NIS 43 million. The company outperformed 3 other bids, the average of all bids was 57.6 million