Thursday, March 29, 2012

Jaffa property prices more than double in 4 years

The Israel Land Authority today published the results of the weekly tenders committee, in which a tender in Jaffa stands out - a tender for a 1.7-dunam (0.425-acre) lot in Jaffa's Ajami neighborhood, zoned for 17 apartments. A comparison of the tender's results with the previous tender in the area indicates that land prices have more than doubled.

The winner, D&A Initiation and Construction Ltd. offered NIS 21.8 million. The lot's development costs are NIS 2.3 million, which means that the company bought the land for at least NIS 1.42 million per apartment, including development. The bid was 105% more than the minimum price set by the Land Authority, but was almost exactly in line with the assessor's estimate. 13 bids were filed for the lot, located between Toulouse Street and Beit Pelet.

"The price we offered is completely realistic," D&A CEO Avner Schneider told "Globes" today. "This is a enclosed site on which it is possible to build a project with 17 apartments. We intend to build a boutique project on the site that will have 140-square meter apartments at NIS 30,000 per square meter. The planned project is close to another project under construction in the neighborhood and its prices are the same."

On the basis of Schneider's figures, apartments in the project will cost NIS 4.2 million each.
Schneider was referring to the Leora project by Almog DAY Holdings (2002) Ltd. The project, designed by architect Ilan Pivko, is under construction. Almog won the Land Authority tender for the lot, zoned for 19 apartments, in late 2007, with a bid of NIS 12.1 million, including development, giving a land price of NIS 638,000 per apartment. A comparison between the two lots in Jaffa's Ajami neighborhood indicates a 123% rise in the value of land in just a few years.

Source Globes

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