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NEWS
New Chareidi City Near Kiryat Sefer?
by Yated Ne'eman Staff
Real estate developer Shmuel Einav recently bought a 1,000
dunam area north of Modi'in, beyond the Green Line. Einav and
his partners paid the sellers, local Arabs, $10 million,
which comes out to $10,000 per dunam or $40,000 per acre.
Einav plans to build East Matityahu on the site, with at
least 5,000 apartments and 30,000 residents, all chareidi.
According to some maps the site is to the east of Kiryat
Sefer, just past the new neighborhoods of Kiryat Degel
HaTorah and Neot Hapisgah.
Einav has a manager for the project, SPM, which will receive
a four percent commission on the proceeds.
There is heavy demand in the area from chareidi families for
apartments in the region, which sell well. The main reason is
the price. The developers can buy the land at low prices, as
indicated by this deal.
Hefziba Building Development and Investment has bought a plot
zoned for 330 apartments from Shmuel Einav for $5.3 million,
or $16,000 per zoned apartment, including the development
work Einav will carry out on the site. Mishab bought a plot
zoned for 50 apartments, apparently for $800,000, also
$16,000 per apartment.
Einav and his foreign partners are negotiating to sell a plot
zoned for 500 apartments to an association headed by Rabbi
Silman for $5 million, and an another plot, zoned for 300
apartments, to Haviv also for $5 million.
The apartments are standard, without many extras.
Construction costs are estimated at $500 per sq.m., or
$45,000 per 90-sq.m. three-room apartment. After adding
planning, marketing, financing, and management costs and VAT,
a three-room apartment can be sold for $80,000-90,000, far
less than an equivalent apartment in other religious
areas.
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