Calcalist, Dotan Levy, 06.12.2020
The Minister of Finance, Israel Katz, today approved the decision of the Israel Land Council to market housing units at a reduced price.
Katz's signature comes 3 months after the decision was approved by the Israel Lands Council. So far, his signature has been rejected and it has not been possible to promote the marketing of dozens of plots, some of which have already appeared on the Israel Land Authority's website.
The delay was due to a dispute between the finance officials and the Ministry of Housing, mainly regarding the amount of the discount and subsidies that will be granted to those eligible.
The new housing program is expected to replace the price per occupant, and includes a discount on apartments, grants and subsidies. According to the plan presented by Litzman and approved in September, in areas where the price per square meter is built high, the state will market the plots using the "maximum price" method, as was customary before price-per-tenant tenders.
In other areas, there will be subsidized tenders in one of three methods: a price per occupant method that will not be abolished and the Israel Land Authority reserves the right to market in this method. According to another method, the state will determine the final price of the apartments, a price that will embody a discount compared to the market price, and the construction companies will compete for the price of the land. A third possible method, intended mainly for the far periphery, in which the state will determine in advance the price of land and the price of apartments, and construction companies will compete with each other for land development payments.
Katz's signature is expected to release a "cork" of plans already published on the site, but some without a brochure and some indicating on the Rami site that the price of development may change, so it is unlikely that entrepreneurs will risk going to such tenders.
Following the signing, Katz said: "The outline is balanced in terms of a reduced price mix and a free market in a way that will encourage development and construction and increase the economic viability of construction projects. The outline is expected to accelerate the real estate market.
Litzman said: "The move will enable the increase in marketing and the strengthening of the housing industry as a key engine of growth, especially in this complex period."