Land Development
Developing Stage
- At this point, where the land is registered in the Minhal of Yehuda V’Shomrone, development of the land can commence. The value of the land has appreciated significantly, more than doubling its purchase price. Should one choose to sell at this stage, there is a robust market
available. - The development stage is contingent on the land’s allocation, whether it is designated as commercial, residential, or both. Investors can exit during this stage, and returns hinge on the proximity to obtaining a building permit.
- A combined deal with the contractor (30/70) involves the contractor bearing construction costs, with investors entitled to 30% of the developed area. This arrangement could yield substantial returns, particularly if permits are secured for a greater number of apartments.
- The development concept offers a streamlined exit strategy, especially beneficial when multiple investors are involved. Joint venture contracts are signed with each investor to preempt disputes post-land registration.
- For smaller groups or individual investors, there is an option to independently develop the land, overseeing the entire building process.
Cost of Developing Land
To understand the actual costs, here is an example of the predevelopment expenses: This is an actual price proposal for planning 80 apartments per Dunam in Givat Ze'ev
Early Project Planning
1.1 Preliminary Development with Work Order 1.2 Receipt of Updated Area Measurement by a Certified Surveyor, Inquiry to the Special Committee of Givat Ze'ev for Planning Information 1.3 Architectural Program, Guidelines for Drafting a New Plan 1.4 Alternatives Examination, Access Solution, Preliminary Planning of Plot Division, Building Erection, Road System, Accesses, and Parking.
Total Early Planning: 72,000 ILS
Detailed Plan - Urban Building Planning
2.1 Submission of the Plan According to Regulations (Blueprint, Construction Regulation) 2.2 Discussion in the Local Committee of Givat Ze'ev 2.3 Discussion in the Secondary Settlement Committee - Deposit 2.4 Implementation of Committee Decisions, Publication for Deposit 2.5 Discussion of Objections, Discussion and Publication in Force
Total for Urban Building Planning: 168,000 ILS
Initial Building Plan
3.1 Initial Program: Primary Building Type Rated: 5-Story Building, Including 10 Residential Units in Various Sizes, Parking Floors, Elevator. Preliminary Development with Work Order 3.2 Formulation of a Conceptual Plan (Type of Alternatives) 3.3 Building Permit Plans 3.4 1:50 Execution Plans 3.5 List of Carpentry, Ironwork, Aluminum, Building Details 3.6 Planning Coordination 3.7 Plans for Contractor / Center Approval
Total for Initial Building Plan: 132,000 ILS
Return Plans for Future Plots
4.1 Site Placement Plan 4.2 Building Permit 4.3 Execution Plans
Total: 2,700 ILS per apatrment
In Conclusion:
Predevelopment costs per Dira Execution Plans
amount to 7,350 + 17% tax.