Almogim Secures Permit for 68 Subsidized Apartments in Rishon LeZion
Real estate developer Almogim has received a building permit for 68 apartments in Rishon LeZion. Due to bureaucratic delays, buyers will be eligible to sell their subsidized units immediately upon completion in 2029.
Four years after the Israel Land Authority marketed the land, 68 apartments will soon be built under the government's subsidized housing program in the Hatzavim neighborhood of Rishon LeZion. The construction is moving forward after the developer, Almogim, secured the final building permit.
Pre-Permit Sales and Allocations
Almogim received the permit late last week. Prior to receiving the official approval, the company had already signed sales agreements with 50 buyers: 3 apartments were sold on the open market, and 47 were allocated under the subsidized "Mechir Matara" program. Additionally, 5 purchase applications were signed, including 2 for open-market units.
Due to the program's regulations and the timeline of the project, the new buyers will be legally permitted to sell their apartments almost immediately upon receiving the keys.
Land Acquisition Details
Almogim did not win the land directly in the Israel Land Authority tender. Instead, it purchased the 2.4-dunam plot in the Hatzavim neighborhood from another developer, Mvnim VeNetivim, a year ago.
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Almogim acquired the land for NIS 37.7 million.
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Mvnim VeNetivim had originally purchased it for NIS 16.5 million, while committing to NIS 12.6 million in development costs.
The approved plan consists of nine-story buildings. Out of the total 68 units, 54 apartments will be subsidized, and the remaining 14 will be sold on the open market.
Immediate Resale Potential
Nearly four and a half years elapsed between the initial tender win and the issuance of the building permit. Under the program's terms, buyers are allowed to sell their properties either 5 years after the building permit is issued or 7 years after the lottery date (December 2022).
In this specific case, the restriction will lift in 2029. Since construction is scheduled to begin late this year and take approximately three years to complete (ending in late 2029 or early 2030), buyers will be able to sell their apartments immediately upon occupancy, securing a state-subsidized profit of hundreds of thousands of shekels without ever living in the project.
