Hura Land Tender Offers Rare Private Housing Under 2 Million Shekels
A new land tender in the Bedouin town of Hura offers plots for semi-detached homes at a total cost of around 100,000 shekels, presenting rare sub-2 million shekel private housing opportunities.
The Bedouin town of Hura has undergone a significant transformation over the past few years. In 2018, when the state marketed a land tender in the town aimed at increasing the local population, it housed 18,000 residents. Today, 25,000 Bedouin live in Hura. The southern town is located northeast of Beersheba, south of Meitar, right along Route 60.
Hura was established about 37 years ago to unite seven Bedouin settlements in the Negev region, including Rahat, Kuseife, Tel Sheva, and others. Unlike other localities, it features 14 schools with a low dropout rate. Development is high compared to other surrounding settlements, and many Bedouin wish to buy homes in the area.
Tender Terms and Land Costs
Land tenders by the Israel Land Authority are usually derived from the land price. When the price is low, the offers submitted in the tender are low. Consider the pricing: a 700-square-meter plot on which a semi-detached building can be built, meaning two units, will cost 32,000 shekels plus VAT. In some plots, it will be possible to build 3 housing units.
The state also charges development expenses, of course. Usually, these amount to a few hundred thousand shekels, and sometimes over a million shekels in non-peripheral localities. For most of the plots, development expenses stand at 68,000 shekels. This means the total payment will stand at about 100,000 shekels for land to build a semi-detached home, excluding the VAT component for the land, which will raise the price by an average of about 5,760 shekels.
If we take an average house of 180 square meters, with the average construction cost in the area, one can arrive at a private home priced at less than 2 million shekels. Today, such prices do not exist in Israel. True, construction costs are significant, but we have already seen tenders in the south where prices reach about 2.8 million shekels and even 4 million shekels.
The Scarcity of Ground-Attached Homes
Ground-attached homes have become a rare commodity in Israel due to the fact that they are a unique product. The state has no interest in marketing land for ground-attached homes but rather for high-density construction.
If it can build a building with dozens of apartments instead of 4 ground-attached homes, it improves the supply side and can thus lead to a drop in prices. Ground-attached homes take up space and waste the opportunity to build additional apartments.
The tender itself will include land for the construction of 182 apartments in total. Due to the fact that it is a Bedouin locality, apart from reserve soldiers who receive priority in the tender, it will also be marketed to minorities. The tender closes today, and it will be interesting to see the response of the Bedouin sector to the land in the town.
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