The Israeli government plans to invest 300 million shekels to subsidize land tenders for housing in peripheral areas, particularly in the southern region. This initiative aims to revive previously failed tenders due to declining demand from developers, who fear a lack of buyers for the housing units. Despite the substantial funds already allocated, the impact on the real estate market remains limited. The Ministry of Housing hopes these subsidies, which reduce development fees for developers, will encourage the construction of affordable housing, targeting a price of no more than one million shekels for a four-room apartment. However, there are criticisms regarding the effectiveness of these subsidies, with some suggesting it might be better to allow some developers to go bankrupt to enable a 15% drop in prices.
