Dira Le'haskir – the government-owned housing and rental company – and the Israel Land Authority announced today (Wednesday) the results of two tenders intended for long-term rentals in the Sde Dov district of Tel Aviv.
As part of the two tenders, plots were marketed for 966 housing units, all designated for long-term rental for a period of 20 years. Of these, 483 housing units will be rented at a reduced price for eligible tenants. The tenders also include 4,618 square meters of office space, 4,663 square meters of commercial space, and 1,201 square meters of public buildings.
Sde Dov Tender A: 424 housing units – 7 bids were submitted, with Prashkovsky Menivim winning for approximately NIS 282 million, including VAT and development costs.Sde Dov Tender B: 542 housing units – 5 bids were submitted, with Prashkovsky Menivim again winning for approximately NIS 489 million, including VAT and development costs.
Both complexes are located in the developing Sde Dov district of Tel Aviv, a strategic area expected to become one of the city's most desirable neighborhoods. The district benefits from excellent access to public transportation, proximity to the sea, and advanced urban planning, including commercial areas, parks, and public institutions.
"A Significant Mass That Will Directly Impact the Housing Market"
Minister of Construction and Housing, Rabbi Yitzhak Goldknopf: "The strong response from the business sector is a vote of confidence in the programs led by 'Dira Le'haskir' in the Sde Dov district. It is not every day that thousands of apartments are added to Tel Aviv in a long-term rental program, representing a significant mass that will directly impact the housing market. The Ministry of Construction and Housing and the government are committed to continuing to increase the supply of housing units across the country."
Yossi Prashkovsky, Chairman of Prashkovsky: "Prashkovsky strengthens its position as the key player in the Sde Dov complex with its win in this large-scale project, which will enhance its influence on the area's renewal. As a leading company in real estate development and construction in Israel, we believe in developing high-quality residential environments and investing in rental housing, driven by a vision to create long-term housing solutions at the highest standard."
Director of the Israel Land Authority, Yanki Quint: "From the outset, we have insisted that Sde Dov provide housing solutions for all sectors of Israeli society. Allocating more than 1,300 housing units for long-term rental and assisted living reflects our policy on the matter. Sde Dov is the best example of the advantages of centralized land management. The Israel Land Authority is working to use state lands efficiently and to relocate institutions and facilities from high-demand areas. We are currently working on similar initiatives, such as relocating military bases and hospitals."
Haim Froimovitz, Chairman of Dira Le'haskir: "I welcome the successful closure of the two tenders in the Sde Dov district, which represent a significant step in expanding the long-term rental housing supply in Tel Aviv. The success of the tenders indicates the strong confidence of development companies in promoting long-term rental housing solutions. The Sde Dov district, which is expected to become one of the city's most desirable neighborhoods, joins a series of successful projects promoted by the company in Tel Aviv, offering renters a worthy alternative to homeownership and the unregulated private rental market. The marketing of these complexes in Tel Aviv aligns with efforts to increase the long-term rental housing supply nationwide, with a focus on the north and south, led by the company's marketing and planning divisions."
Inbal David, CEO of Dira Le'haskir: "The success of the tenders in the Sde Dov district marks a significant milestone in developing the long-term rental market in Tel Aviv. Half of the housing units will be rented at a significantly reduced rate compared to the free market. With these tenders completed, the total number of Dira Le'haskir housing units in Tel Aviv will rise to approximately 3,613 across various locations—north, central, and southern Tel Aviv—at regulated prices that provide financial security and peace of mind for tenants. Dira Le'haskir is working on additional marketing efforts nationwide for 2025, involving thousands more housing units, and is planning zoning plans for over 100,000 additional housing units to expand the long-term rental supply. Together with the Ministry of Construction and Housing and the Israel Land Authority, the company is solidifying the long-term rental market in Israel."