Reality Fund and Rekhes Real Estate Win Major Land Tenders in Herzliya and Kiryat Gat
The Israel Land Authority completed two major tenders: Reality Fund secured residential land in Herzliya for 42 million NIS, while Rekhes Real Estate acquired industrial land in Kiryat Gat for 53 million NIS.
The Israel Land Authority (ILA) has successfully completed two significant land tenders, highlighting the current trends in the Israeli real estate market. While residential land tenders for the general public have been declining, a rare tender in the high-demand central region has been closed, alongside a major industrial land transaction in the south.
Residential Development in Herzliya
In the central city of Herzliya, the Reality Fund (Keren Reality) won a tender to purchase a 2.5-dunam plot in the veteran Neve Israel neighborhood. The land is zoned for the construction of 66 housing units.
Reality Fund submitted the winning bid of over 42 million NIS, excluding development costs of approximately 2 million NIS. This translates to roughly 670,000 NIS in land cost per housing unit, which is about double the price paid in peripheral areas. Notably, the official appraisal valued the land at 87 million NIS, meaning the Reality Fund secured the plot at approximately 50% of its appraised value.
Seven other bids were submitted for the plot, ranging from 16 million NIS to 32 million NIS, with the minimum price set close to 12 million NIS. Neve Israel is a southern neighborhood bordering Ramat HaSharon and the Kibbutz Glil Yam area, where housing prices range between 40,000 NIS and 50,000 NIS per square meter.
Industrial Expansion in Kiryat Gat
In a separate tender, Rekhes Real Estate—an income-producing real estate firm specializing in logistics and industry, owned by Arkin Capital, Tomer Katz, and Poalim Equity—won a 20.5-dunam plot in the Kiryat Gat industrial park.
Rekhes Real Estate won the plot for 53 million NIS. The land includes building rights for approximately 40,000 square meters and is designated for storage, industry, and crafts. The company plans to develop a new project tailored for industrial and logistics users, with an estimated total investment of 200 million NIS.
The Kiryat Gat industrial park is classified as National Priority Area A under the Law for the Encouragement of Capital Investments, offering high accessibility to Highway 6 and major transportation routes.
