Four more tenders for marketing land for residential properties in Sde Dov in north Tel Aviv are set to close today. Like the four tenders that were successfully marketed last month, these tenders have also aroused lively interest.
The four latest tenders are for 2,744 housing units in the northern part of Sde Dov. They offer land for dense housing construction and long-term rental apartments. In total 16,000 housing units will be built in Sde Dov with as well as office and commercial space, hotels, public buildings and more.
What will the land prices be?
One of the most intriguing issues around the Sde Dov tenders, especially after the February tenders closed, was the price of land. The four tenders that closed last month reflected land prices that were significantly lower than the prices set in the Sde Dov tenders in 2021 and 2022, a decrease of about 40% in the prices of the overall land, and about 70% in the prices of land designated for long-term rental projects.
The substantially lower prices reflects a trend over the last two years, which began following the increase in interest rates. The land in the north of Sde Dov, including the lands in the tenders that close this week, are in a more advanced planning stage, and this could be reflected in higher prices (since the winning bids will be able to build and complete projects in a shorter time). Moreover, those who did not win the tenders in February are expected to try and win this time – and may offer higher bids, in order to increase their chances of winning with this attempt.
How much will the state earn?
When the ten new tenders (of which eight have closed over the past two monmths) for housing in Sde Dov were announced, estimates were that the state would be able to earn about NIS 14 billion or even more from them. In reality, the amounts will probably be slightly lower, due to the significant drop in land prices.
For the four tenders that were marketed last month, the state will receive (when the winners complete the transfer of money to the state) about NIS 6.3 billion. Calculating revenue expected from the upcoming four tenders based on NIS 1.6 million of land per housing unit – the average land price received in the February tenders – amounts to about NIS 4.4 billion, and about NIS 10.7 billion in total in the two “waves” of tenders.
It is possible that total revenues will be slightly higher, assuming that land prices this week do not reflect the same decline in prices, and to this must be added two tenders, for 730 more housing units, which will close later – so that total revenues from the ten tenders could reach NIS 12 billion.
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The Israel Land Authority also recently published three more tenders for hotels in Sde Dov, and that there is also more land for housing that has not yet been marketed in Sde Dov – so the state can count on major revenue from marketing all the land in the area.
Published by Globes, Israel business news – en.globes.co.il – on March 26, 2025.
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