NIS 1.2 billion for the ultra-Orthodox through the 3,438 "discount apartment" tenders

Tomorrow (Monday) one of the largest and most important housing tenders of this year is expected to take place: a tender for the construction of 3,438 apartments in the new ultra-Orthodox neighborhood of Neve Shamir in Beit Shemesh, which will add about 20,000 new residents to the ultra-Orthodox city.
If someone is still trying to present Beit Shemesh as a mixed city, this tender, and others like it, are expected to establish its character as a city with a fast-growing ultra-Orthodox majority, as the results of the recent municipal elections also proved.
At the end of the tender, the state treasury is expected to collect at least NIS 1.5 billion from the winning entrepreneurs, most of it as "development fees" that are supposed to be reinvested in the development of the neighborhood. Often, the development fees are also used to build public buildings in the neighborhood.
However, in the case of the new district in Beit Shemesh, the contractors will be required to commit to the construction of the public buildings, at least in part, as part of a non-monetary payment for the win. The minimum prices for participation in the tender amount to NIS 1.3 billion. In some lots, no minimum price is set, except for development expenses.
The Ministry of Housing attaches great importance to the tender. In the tender brochure it is defined as "Orthodox design", which means that the neighborhood that will be built will be ultra-Orthodox. The developers are not prohibited from selling apartments to non-Orthodox people, but the mere announcement of an "Orthodox character" deters them and is enough to determine who the actual buyers will be. The declaration of "Orthodox design" also obliges the Ministry of Housing to demand from developers and planners appropriate construction: buildings with a maximum height of 8 stories, twice as many classrooms compared to the general public and a host of other unique services.
80% of the apartments in the new district, 2,751, will be marketed with a government subsidy as part of the "Target Price" program (previously called "Discount Apartment"). This is a relatively high proportion of subsidized apartments in a place that is not considered the heart of the demand area, but the organizers of the auction estimated that the demand for another ultra-orthodox district in Beit Shemesh would be high.
Beit Shemesh is considered a central solution to the ultra-Orthodox housing crisis in Jerusalem, and its proximity to the capital makes it highly sought after. The price of the subsidized apartments will be about NIS 1.4 million for a four-room apartment, compared to NIS 2-1.8 million in the free market in the city.