Tel Aviv to Launch New Tenders for 600 Housing Units in Ramat HaHayal
The Israel Land Authority announces new tenders for nearly 600 housing units in Tel Aviv's Ramat HaHayal, amid a broader decline in multi-family land marketing and high property prices.
The Israel Land Authority (ILA) plays a crucial role in determining housing prices by marketing land to contractors. An increase in land supply generally leads to a larger long-term housing supply, influencing market prices. However, a noticeable shift has occurred since the beginning of the year, as the state remains entangled in political appointments regarding the ILA directorship, having appointed an interim director while failing to secure a permanent appointment before the holidays. Meanwhile, a decline has been recorded in land tenders for multi-family construction targeting the general public, even as subsidized housing tenders remain elevated.
Tenders in the Tel Aviv area are traditionally scarce, but the state is set to launch two new tenders next month for approximately 600 housing units in the highly sought-after Ramat HaHayal neighborhood. According to the master plan, a brand-new residential neighborhood will be established in the northern sector of the Ramat HaHayal employment district. The project includes three multi-use municipal buildings combining residential apartments, office spaces, and commercial areas, alongside public structures and a public park.
New Residential Tenders in Ramat HaHayal
The first tender encompasses 342 apartments distributed across three distinct plots, with the primary plot accounting for 222 units. The second tender will market 256 apartments across two additional plots. Minimum prices for these tenders range from 15 million to 20 million NIS, excluding value-added tax (VAT) and development expenses. Out of the 598 total units planned, 15% will be designated as affordable housing, primarily comprising reduced-rate rentals alongside select long-term rental apartments.
"The upcoming ILA tenders in the central district are a welcome development, signaling that the state is not completely ignoring free-market multi-family construction despite a significant decline in such offerings."
Market Prices and Recent Transactions
Housing prices in Ramat HaHayal vary significantly between older properties and new developments. Recent transactions at Ram Aderet's boutique residential project on Olei HaGardom Street—featuring a five-story building with 24 apartments and an underground parking facility—highlight current valuations. Recent deals show 3-room apartments commanding exceptionally high prices between 52,000 and 57,000 NIS per square meter, translating to roughly 4.3 to 4.4 million NIS for an average 77-square-meter unit. Conversely, larger 5-room apartments spanning 134 square meters sell at a lower rate of approximately 47,000 NIS per square meter, with total prices hovering around 6.41 million NIS.
According to Yaziv's 2024 annual summary report published in early 2025, prices in the Ramat HaHayal and Yad Eliyahu areas generally average around 42,000 NIS per square meter. This discrepancy likely stems from differences in project portfolios, yet it cautiously indicates that despite frequent discourse regarding steep housing price drops in Tel Aviv, developer financial reports reflect persistent high valuations.
