The Israel Land Council has approved the implementation of the target-price plan. The plan will be operated during its first four months without a lottery. After the first four months entitlement to purchase an apartment in the target-price plan will require a lottery due to concerns that contractors will market the apartments with a 20% discount to relatives rather than the general public.
The Ministry of Construction and Housing is now expected to market land zoned for the construction of thousands of homes in those cities such as Modi'in and Rosh Ha'ayin that have already signed an agreement to participate in the plan.
Chairman of the Israel Land Council and Minister of Housing Uri Ariel said after the plan was approved, "The target-price plan will lower apartment prices and help Israelis put a roof over their head. This is the government's commitment and I will ensure that it is fulfilled."
The Ministry of Housing is currently running an ad campaign calling on the public not to buy apartments but wait until the target-price plan is available.
Those eligible for target-price apartments include first-time homebuyers, and people moving to a larger/different home (who own only one apartment and wish to move to a target-price home instead). Buyers will need to present a certificate of eligibility, which will be issued by the Ministry of Housing.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2014
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