Tender closed: High demand, few offers for Eilat's hundreds of apartments

The Israel Land Authority recently announced the results of a tender for land in the new neighborhood being constructed in Eilat, named "Shifoli Ha’Ar" due to its location in the mountainous terrain north of the city, adjacent to the Eilat Mountains nature reserve.

This is the fifth land tender in this neighborhood within the past two years, but unlike previous tenders, it is offering normal saturated construction for the free market, rather than being part of a target price plan or detached construction.

The last auction in the city meant for the free market took place in 2018 in the Shahmon neighborhood, but had a low response. However, this time, according to the results published by Rami, it seems that the demand for lots was relatively high with six offers for each of the four complexes. Still, the offers received, along with the development expenses, fell significantly short of Rami's appraised prices.

The winners of Rami's latest tender are Olitsky Development and Housing, who will pay NIS 24.8 million for a 9-dunam area capable of accommodating 88 units; Amram Avraham, who will pay NIS 27.42 million for approximately 10 dunams, where 99 units can be built; Adani Eretz through Ash Shikhon and Enterprises, who will pay NIS 25.052 million for a 7.7-dunam plot that can accommodate 88 units; and Luzon company Lavi, who will pay NIS 42.32 million for a plot of land covering roughly 27 dunams, where 100 units can be built. The average price per dunam was approximately NIS 2.7 million.

The neighborhood, spanning 1,442 dunams, is located north of the Sheshat Hayim and Derech Harim streets intersection, adjacent to the southern bank of Nahal Rodad and between the Holland Forest at the foot of Masib Eilat. The neighborhood will consist of around 2,680 units and approximately 373 hotel rooms.

The housing mix will be diverse, including detached houses, saturated construction, housing units with a combination of employment and commerce, as well as special housing at different density levels ranging from 5.95 to 6.56 units per dunam.

Additionally, the neighborhood will feature commercial and office areas (approximately 3 dunams), public institutions (about 80 dunams), road infrastructure (about 352 dunams), a pedestrian promenade along the foothills of Masib Eilat, tourist and recreation areas (about 16 dunams), and open spaces that encompass the expansion of Nahal Hatzomach park area (about 495 dunams).