Israel Rental Housing Tenders Stalled as Rents Continue to Rise
Rents in Israel are rising as state-backed long-term rental housing tenders face severe delays, with only a fraction of thousands of planned units moving forward.
Rents are climbing as state-backed long-term rental housing tenders stall, with only a fraction of projected units moving forward. Out of 25 planned tenders by the Israel Land Authority (ILA), only four have advanced, leaving thousands of anticipated housing units frozen.
The Green House Project in Tel Aviv-Yafo
Among the few active initiatives is a newly launched tender for 157 apartments near The Green House in Tel Aviv-Yafo. Another attempt to market 180 units in the Maccabi Jaffa area was recently canceled. The long-term rental project grants lease rights for planning and constructing a rental housing complex for 20 years, alongside commercial, employment, and public spaces, including preserved historic structures.
The tender involves a lease contract for a period of 98 years with an option for an additional 98 years, managed in cooperation with the government-owned company Dira LeHaskir.
Delays and Future Outlook
Initially announced in October 2024, the tender faced repeated postponements by the ILA and Dira LeHaskir. Officials now expect the tender booklet to be released, aiming to close the bidding process and announce a winner by late November. The project in Jaffa's Ajami neighborhood features approximately 160 rental units averaging around 70 square meters, integrating historical landmarks such as The Green House built in 1934.
