Can you buy (the right to build) an apartment in Israel for 1 Ils?

Some of you may be surprised, but the short answer is Yes!

So here’s the However:

1. These prices do exist in Bids - but as for all bids, you may not win and could spend a few thousands in bank guarantees just for the chance to bid.

If you don’t mind getting a small fund together, which will pay for itself in the long run for several bids, then you can go to step 2.

2. Scale - to win a bid for a competitive price, you are ought to differentiate yourself from most competitors, therefore you may want to submit a bid for at least 10-20 units. Hence will require to acquire several units as part of the bid.

3. Competition - bids in plots in prime locations will not be sold for 1 Ils. You should avoid areas such as tel aviv, Jerusalem and the centre if you are looking for a ‘bargain per unit’. 

4. Development fees - worth noting that development fees apply to all developments in Israel, not just bids. these are the costs to prepare and connect all the infrastructure to your site including road, pavement, sewage etc… 

These fees must be paid as part of the bid, should you win ofcourse and can be between 70-500,000 Ils per unit, depends on the local authority, site levels and connectivity improvements needed to prepare the site for construction.

5. Construction cost - should you wish to fulfil the dream and build the development, you are looking at a minimum of 1m Ils per unit in today’s value, this could easily climb to 1.5 if not 2m subject to standards, amenities and finishes.

6. Last but not least, Analysing bids is not an easy task! Bids can have caveats, hidden payments, planning obstructions and site constrains. hence way most investors or even large developers in Israel - do not wish to get involved. This is indeed a time consuming task 

But that’s why we are here !

On the 31/12/2025 a bid was closed in the attractive city of Eilat, laying on the coast of the Red Sea. Anyone could have submitted a bid for 1 ILS per unit and would actually win a nice plot of land.

how is this possible?! Let’s consider all the above and look at our Developer’s profit for the 8 unit plot in Eilat no one wanted for 8 Ils ;

1. Bank guarantee to bid - 8 Ils for the units + 2,587,585 development fees - cost of gurantee at 6,800 Ils for 3 months until winning bid announced. Again one should assume will not win every bid and may take 5-10 bids to win - let’s say fund of 35-60,000 ils should be allocated to gurantee a win.

2. Development fees - as noted above are 2,587,585 per plot (323,449 per unit).

3. Design, planning and permitting - assume 125,000 Ils per unit in total for the entire process.

4. Construction cost - let’s say 1m per unit should get us a decent project. 

5. Cost of funding - for 5 years until completed - about 100,000 per unit.

Cost to develop an apartment in Eilat:

1.6m

Sale price of similar unit in Eilat 1.8m, deduct VAT and you reached 1.5m

That’s no profit, or even could be a loss. hence no one placed a bid. but sure, you CAN buy Land in Israel for 1 ils