Maale Adumim land tender fails amid high development costs

Developers avoided bidding on plots where development costs reached hundreds of thousands of shekels per housing unit

According to the report, land in Maale Adumim offered for tender included development costs estimated at around 100 million shekels, translating to roughly 600,000 shekels per housing unit. The scale of these costs deterred developers, who avoided submitting bids, and the tender was ultimately declared failed. The case adds to ongoing discussions regarding the Israel Land Authority's handling of land tenders. It is not yet known when or whether a new tender will be issued for the land.

What this means for land buyers

High development costs can significantly raise the final land cost per housing unit, even when the base land price appears reasonable in a tender. Land buyers and developers should carefully examine the full scope of associated costs—development, infrastructure, and levies—rather than relying on the base price alone.

Further reading

• Active tenders and results
• Taxation of land purchase