A change in housing for long-term rent:
46,000 housing units for long-term rent have already been approved by BOTAML and will be marketed as part of "apartment for rent" tenders.
"In the coming years, tens of thousands of housing units for long-term rent will enter the market. To date, BOTAML has approved 46,000 housing units that will be marketed as part of 'apartment for rent' tenders, and this is only half of what is planned," Daniela Paz Erez said today (Monday). CEO and owner of Paz Economics and Engineering, as part of a seminar on long-term leases.
“In terms of the Investment Encouragement Act, in 2020 more than 3,000 housing units were approved for long-term lease, the figures for 2021 have not yet been published but we are expected to see much higher numbers. More housing for rent is seen as part of construction on brown areas. Building for rent was defined in the Planning and Building Law as a public purpose. And today it is possible to promote long-term lease projects on both private and public brown land. It also allows local authorities to own such projects and come out with BOT tenders or other tenders. We have already seen an example of such a tender in Bat Yam, which is in its infancy, but we believe that we will see more and more such projects when the local authorities understand the potential. "
Adv. Doron Ariel, founder of Doron Ariel & Co. and a real estate expert, commented on the law to encourage capital investments: "The Ministry of Finance is unfortunately trying to 'run over' small and medium-sized companies and remove them from the field, for no apparent reason.
In addition, the move under the amendment to the Capital Investment Encouragement Law, which will now require entrepreneurial companies to rent the apartments for a period of 15 years, is unlikely.
The companies will not be able to expect the yields for such a long period, so how do you expect them to enter the industry even more, especially in light of the fact that the price of land for rent for construction is almost equal to the price of a unit of land for sale in the market? "
He added: "The State of Israel deserves a long-term lease, the institutional bodies in the country have done it in Berlin and the Netherlands and now they will do it in Israel. As the years go by we are witnessing the great difficulty of young couples to purchase an apartment and long-term lease is the solution."
Shirley Mishael, director of the real estate department at Discount Bank, noted that "corporate rental housing is not yet developed in Israel and is in a gap in relation to the world.
However, to our understanding, the economy is at a turning point for the reason that housing prices are steadily rising.
In the last year alone, prices have risen by about 9.2%.
Land prices are rising and embody a price increase in the next two years.
This means that more and more young couples will have difficulty purchasing apartments.
In such a situation, institutional, supervised rental housing will be an alternative to buying an apartment, and we see demand for the product and more and more players entering the field. "
Inbal David, CEO of 'Apartment for Rent': "I have great faith in the private market, the developers know how to set up the projects and maintain them.
Therefore, when you want to establish a new market, and the rental market in Israel is new, it is not true that the state will do it alone.
The state should be a kind of catalyst, and continue to enter base assets, but no less important is the encouragement of entrepreneurs and authorities.
I want entrepreneurs to be financially worthwhile. "
She added: "And if you still give a spot on the tenant himself: in the end, a young family, with a three-year-old child and a ten-year-old child, can now imagine themselves in the same apartment actually sending the eldest to the army and celebrating a small bar mitzvah. "It exists in Israel until now. And this is the role I see for an apartment rental program. The Arrangements Law is an expression of many insights of six years of activity, so I can say that we are even before the big break."
