All the reasons to be satisfied:
the Israel Land Authority published a record number of housing units for marketing in 2022 - 107,181.
This is a historical record that even exceeded the data recorded in the 1990s, during the great wave of immigration and massive construction.
Also in terms of approved transactions this year, a high number was recorded - 80,579 units in approved transactions. For comparison, in 2021 approximately 63,420 units were sold in approved transactions, and this after a three-year decrease from the previous record in 2017, when 43,122 units were sold.
We note that these are indeed impressive numbers, but it is important to understand that these are not housing units that have started to be built, but only the signing of a land sale agreement, and in some cases the land may not yet be ready for construction or the appropriate infrastructures may not exist.
And in any case, only after settling all these issues can the process of issuing the program approval begin.
Then the issuance of the permit - something that can take a few more years, and in some cities may reach five years.
Of all the approved transactions, 43%, which is 46,342 housing units, were sold as part of the "Target Price" program, 22% exempted from bidding, about 10% in public auction, about 6% in housing for rent, and more.
RMI says that "the authority worked to reduce the costs of land and development in the free market", which of course contradicts the widespread criticism that RMI is "spoiling" state lands and raising their prices.
Bermi provided several examples of curbing land prices.
Curbing the price of land
In Be'er Ya'akov there was a moderate decrease from March 2021 to July 2021 - then the value of a unit at a reduced price was NIS 1,067,466, and since then there was a larger decrease, until December 2022, when the value of the housing unit dropped to 728,544 NIS.
Haifa Bay (archive), photo: Michel dot com
In Haifa, in the southern entrances project, there was a decrease from 883,897 NIS per unit in October 2021 to 743,697 NIS per unit in September 2022.
Be that as it may, for the second year in a row, BRAMI is proud of the state's income from land, which jumped in the last two years from 11.7 billion shekels in 2020 to a record of about 31.6 billion shekels in 2021 and another record in 2022 - about 37 billion shekels.
We note that the prices of apartments increased in the last year by more than 20% and in the previous year by more than 10%.
Yankee Quint, Director of the Israel Land Authority: "2022 was a record year in several parameters of the Israel Land Authority: in marketing, publications, income and even in curbing the increase in land prices. This year, we followed a policy at Rami that operated simultaneously both to increase the supply of residential land and to lower the price of apartments for young people and families who are still They don't own an apartment."
"Very encouraging data"
"This year we managed to reach a record target in the marketing of residential land, and directed the majority of the housing units in the tenders to 'discounted housing' for the benefit of young couples. Appraisers' evaluations in the discounted tenders such as 'apartment at a discount', 'target price' and the like indicate very encouraging data, so that couples Many who win the next lotteries will be able to exercise their right and get apartments at discounted prices."
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