Israel Land Authority doubled its revenues in 2021: total revenue has so far amounted to NIS 23.1 billion

The Israel Land Authority doubled its revenues in 2021, following the rise in land prices paid by developers, the reduction in the volume of discounted land marketed at a discount, and an increase in actual marketing. Rami's total revenue has so far amounted to NIS 23.1 billion, and it is expected to reach NIS 24 billion by the end of the year. In 2020, state revenues amounted to only NIS 12 billion.
Revenues last year were relatively low, due to the impact of the corona closures as well as due to changes in the PA management. On the other hand, revenues increased this year with the reduction of price tenders per occupant - in which the state subsidized discounts on the price of land. The previous government announced a more limited program ("reduced-price housing") that was implemented in a very partial way, in view of the functional difficulties caused by the lack of budget. However, the volume of land marketing in 2021 also exceeded the previous record set in 2017, in the amount of NIS 16.1 billion.
The state's revenues from land marketing join the state's huge revenues from taxes on real estate transactions, which also jumped and are expected to reach NIS 20 billion. At NIS 18.5 billion.
The Authority taxes the industry through purchase taxes on the purchase of apartments, praise taxes on the profits from their sale, as well as corporate taxes and income taxes. In addition, the industry brought in hundreds of millions of shekels to the local authorities, which collect improvement levies from the entrepreneurs. Thus, in total, the state increased its revenues from real estate taxation and land marketing by 76%, to NIS 44 billion in 2021.
The authority reported deals signed for 53,000 housing units, in addition to commercial, employment and hotel areas. Reducing the volume of subsidized tenders allowed Rami to accelerate the pace of tenders and also led to a higher rate of success in tenders. Quite a few of the subsidized tenders failed after developers estimated that the low price requirements written by the state could not be met.
One of the factors in accelerating revenues is the land tenders in the luxury areas of Sde Dov and Ramat Hasharon. In the first tender in Sde Dov, land was marketed for a residential neighborhood in the amount of NIS 4.4 billion, a record amount relative to the number of apartments - 1,574. A similar amount was raised from the sale of six housing plots in Ramat Hasharon. The housing tenders in the Sde Dov area, as well as in additional demand centers for apartments such as Rishon Lezion, Beer Yaakov and Petah Tikva, were made possible, among other things, due to the progress of the evacuation of military camps.
According to plans recently presented by Rami's director, Yaakov Quint, the volume of apartments on the land that the army will vacate in Tzrifin in 2022 is expected to total 7,500, and the rest of the land will also be marketed in plots in north Tel Aviv in Sde Dov. To accelerate the planned evacuation of six additional military camps in exchange for financing the transfer from the proceeds of the sale of the territories to developers.