Calcalist, Ronen Niv,  29.10.20

Approval for the deposit of the Azure Beach Plan in southwestern Herzliya last summer may have marked the beginning of a major construction wave in the area, with eyes now on the northern part of the city, near the Interdisciplinary Center and the upcoming airport, where a new district of 10,000 units will soon be built Housing next to tens of thousands of square meters of offices and commercial space.

The "Northern Herzliya Project", included in the Tamal / 3006 plan of the Israel Land Authority and the Hotamal, is receiving great interest from investors, among other things due to the low to non-existent supply of large construction projects in the heart of Gush Dan, and the fact that investment in land can be relatively modest. The Corona crisis, it seems, did not stop the real estate buzz around the project either: an examination of land prices in areas of demand shows that these have remained stable so far, and in some cases even showed an increase.

These data continue a long-standing trend of rising prices in the region. According to the Madeleine website, the average price of an apartment in the western green neighborhood of Herzliya jumped in the period between March 2011 and December 2019 by close to NIS 1 million - from NIS 3.11 million at the beginning of the decade to NIS 3.95 million at the end.

"Those who own field units in the area are expected to have a significant increase in value, given their optimal location, in proximity to the IDC Herzliya and major transportation arteries," analyzes real estate appraiser Reuven Shem Tov. "It should also be remembered that the detailed planning that the area will undergo in the coming years will only improve the value of the land."

Housing, employment and transportation

The area of ​​the new quarter was declared by the Housing Cabinet in December 2018 as a preferred housing complex, with according to the plan about 10,000 housing units will be built in Herzliya and another 280 housing units in Kfar Shmaryahu, along with commercial, office and employment uses, bus terminal and open and built public areas.

The plan weakens the area between the Jewish Brigade Street and Menachem Begin Road to the south, Kfar Shmaryahu to the west and Road 531 to the north, and is in fact divided between three municipal authorities - Herzliya, Kfar Shmaryahu and Raanana. Among other things, it also includes part of Herzliya Airport.

"Tamal / 3006 seeks to provide a comprehensive response to northern Herzliya in a wide range of aspects - from residence through trade and employment to transportation accessibility," says Shem Tov. "There is a desire here to correspond with the natural texture of the area, and to adapt to it the nature of construction. This interest is reflected in construction plans at varying heights out of a desire to produce a diverse residential mix that caters to a wide population section."

Karkelist CEO, Shirley Rieger-Agiv 

The lands in northern Herzliya, it should be noted, are also included in the framework of the new comprehensive master plan for Herzliya Har / 2530, which expresses the vision for 2035 and presents a long-term policy for planning and development. According to the plan, the northern quarter will be a continuation of the city's urban continuum and will offer an innovative and vibrant urban space.

The right time

Naturally, even the real estate developers experienced in locating opportunities have already stuck a stake in the land in question. But it is in the final stages towards a compromise - this is exactly the best point in time for making the investment, "says Shirley Rieger-Agiv, CEO of Karkelist . The company also recently announced that the first investors through the company will enjoy presale prices starting at only NIS 149,000 per plot of land.

According to Rieger-Agiv, "this is an investment in private land registered in the name of the purchaser in the tax register.

"We see that the land investment industry has only strengthened its position in the days of the Corona, and it is precisely during this period that the circle of investors is expanding," she adds. "Today more than ever, people are realizing the opportunity offered by investing in land in areas of demand. From every aspect, investing in such land is a proven investment, and this is also reflected in the number of real estate transactions last August that jumped by 23%."