Land Supply Key to Stabilising Housing Prices

At the recent Kibbutz Momentum conference, Israel Land Authority (ILA) Director General Yaakov Kvint stressed the importance of increasing land availability as a means to control escalating apartment prices in Israel.

Kvint addressed the ongoing transformation of Kibbutz HaOn into a community settlement, as the kibbutz undergoes insolvency. Responding to criticism about the land tender, Kvint defended the ILA’s decision-making process, explaining that 248 lots are being marketed, with 63% of them allocated to reserve duty soldiers and disabled IDF veterans. This priority, according to Kvint, was established well before October 7. He added that families from all over the country made reasonable offers for the land, and dismissed claims that only the wealthy would benefit from the tender.

Kvint also pointed to a broader 20% reduction in land prices over the past four years, following the marketing of land for 400,000 housing units. Despite this, he acknowledged that ongoing construction delays, high interest rates, and rising input costs continue to drive up apartment prices. Contractors, he explained, are shouldering significant financing costs, particularly through the common 10/90 payment scheme, where 10% is paid upfront and the remainder later.

Looking forward, Kvint urged for the expansion of the 'Target Price' program to provide greater discounts, especially in peripheral regions. He emphasized that the ILA remains committed to making land available for all sectors of the economy, and that reducing housing prices will require further collaboration with the Ministry of Finance and public institutions.

This article was originally reported by Globes Israel.