Harish Land Tender Fails as Developers Shun New Housing Projects
A major land tender for 722 housing units in Harish failed completely after developers refused to submit bids. Despite low property prices and affordable land costs, weak market demand continues to plague the city's real estate sector.
The city of Harish is struggling to attract homebuyers and developers despite offering relatively low property prices well below the national average. A recent public land tender for 722 housing units ended without a single winning bid, leaving the plots completely vacant as developers shun the area.
According to the tender details, the government offered several plots ranging from 57 to 172 units, with development costs spanning between 13 million and 47 million shekels. For the largest complex, the minimum land price was set at about 4.2 million shekels alongside 40.5 million shekels in development expenses. This meant a developer would pay roughly 260,000 shekels per land unit, a remarkably low figure compared to other peripheral cities. However, developers refused to participate, citing low market demand and an excess of unsold inventory.
Market analysts point out that Harish suffers from a persistent lack of buyer interest. While new apartments in the city sell for 13,000 to 15,000 shekels per square meter—cheaper than comparable properties in peripheral southern cities like Ofakim or Netivot—most buyers prefer to purchase more expensive homes elsewhere. Furthermore, developers are reluctant to launch new projects while existing unsold units remain on the market, casting uncertainty over the planned southern neighborhood meant to house over 1,600 apartments.
