How Israeli Housing Lottery Winners Doubled Their Property Values

Real Estate Lotteries and the Netanya and Ofakim Bonanza

Between 2018 and 2019, the "Mechir LeMishtaken" (Price for a Occupant) housing lottery scheme was far more accessible, allowing the general public to register. Thousands of people won heavily discounted apartments, with those buying in the periphery securing very low prices and substantial profits.

In projects such as Galil Yam in Herzliya and coastal developments in Netanya, winning a discounted apartment turned into a massive windfall. Buyers recorded profits of 2 to 3 million shekels compared to current market values, effectively receiving a blank check from the state for luxury coastal living at the price of old three-room apartments in city centers.

Ofakim Project Set to Hit the Resale Market

In a few months, apartment buyers in Ofakim who won the massive Y.H. Dimri tender will be legally permitted to sell their properties. Having registered in late 2019 and won in February 2020, they can now sell after holding the property for the required period, with some units already marketed ahead of contract signing next year.

"The big question is what the actual profit will be—meaning, how much the state-distributed lottery ticket is truly worth for the winners." — Market Analysis

Starting prices for apartments marketed in 2019 were remarkably low. Three-room apartments in the project sold at an almost unbelievable rate of 5,800 shekels per square meter, while four-room apartments cost between 700,000 and 750,000 shekels after adjustments and additions.

Current Market Dynamics and Prices

Today, a new three-room apartment costs approximately 1.39 million shekels—meaning a three-room unit now costs twice as much as a four-room unit did back then. Four-room apartments currently sell for 1.6 million shekels, which is well below the national average, yet early lottery winners have effectively doubled their property value.

The main challenge in the Afiki Nahal neighborhood is high supply. With numerous towers and a wide selection of units currently listed, sellers enter a saturated market. Nevertheless, estimates indicate that most property owners will successfully double their investment.

Recent transactions in the neighborhood demonstrate that housing prices across projects range between 14,000 and 16,000 shekels per square meter:

• Y.H. Dimri, 111 sq.m., 4 rooms, 4th floor: 1.61 million shekels (14,504 shekels/sq.m.)

• Hyde Park Ofakim, 118 sq.m., garden apartment, 4 rooms: 1.8 million shekels (15,254 shekels/sq.m.)

• Y.H. Dimri, 111 sq.m., 4 rooms, 3th floor: 1.6 million shekels (14,414 shekels/sq.m.)