Acro Sells Land in Tel Aviv’s 3700 Compound

Acro has sold residential land on the northern coastal strip of Tel Aviv for about NIS 35 million, in a further partial exercise of an option agreement in the 3700 compound. The option was previously exercised over seven plots for about NIS 83 million, and the date for exercising the balance, with a total scope of about NIS 385 million, has been extended to the end of 2026.

What the 3700 compound is

The 3700 compound is one of the largest remaining land reserves in north Tel Aviv, between Tel Baruch North and the coastline. The building rights in the current transaction are estimated at about 258 housing units, though they are not final and depend on planning procedures.

Land transactions in this compound are a good indicator of what the market expects. A developer paying for land today is pricing what they believe the apartments will be worth years from now.

What it means for supply in north Tel Aviv

North Tel Aviv suffers from a chronic shortage of new supply, and that is one of the reasons prices there held up even in weak periods. The 3700 compound is one of the few places where a significant addition of new apartments is possible.

That addition will not arrive tomorrow. Between a land transaction and the delivery of apartments, five to ten years usually pass. In the short term, supply in the existing neighborhoods remains thin.

How this enters a buyer’s or a seller’s decision today

For buyers: if you are weighing an off plan purchase in the north of the city, land transactions of this kind are important background. They show who the players are, what the pace is and what is expected to enter the market in the coming years.

For sellers: future supply does not affect the price of your apartment today, but it does affect timing. Anyone considering a sale within a horizon of a few years should know the timetable of the large projects nearby.

We know Tel Baruch North and the rest of the neighborhoods of north Tel Aviv at close range, including what has not yet been built.

Courtesy of Merkaz HaNadlan · read the original article