Investing in agricultural land or land under a change of use has become a popular investment avenue in recent years, allowing entry into the real estate industry for relatively low amounts, with high improvement potential over a period of several years.
But as with any investment, not all land is a real opportunity. There are areas where the chance of improvement is significantly higher than others, and there are quite a few parameters that are important to consider before making a decision on where to purchase land.
Unlike an investment in an apartment, where the return stems from ongoing rent, an investment in land is based on future improvement, that is, an increase in the value of the land following a change in zoning or planning progress.
Generally, the closer the land is to areas of demand, new infrastructure, and up-to-date master plans, the higher its economic potential.
Therefore, when examining land for investment, it is important to first understand its planning location, where it is located today on the Israel Land Authority map, and not just on the physical map.
1. Sharon and Central Region: The classic demand area. Sharon has been considered a preferred investment hub for years due to its proximity to Tel Aviv, high quality of life and development momentum. In recent years, there has also been lively movement in the field of land for investment:
Raanana - A highly sought-after city, with urban renewal projects and future planning of new complexes in the west of the city. Land in this area enjoys constant demand from investors who believe in the potential for thawing in the coming years.
Hod Hasharon - The city is advancing many construction plans and offers a combination of high accessibility, quality of life and advanced urban planning, making the area an interesting opportunity.
Kfar Saba - Various complexes throughout the city are planned to be built in the coming years. One of them, for example, is the 6 Ben Yehuda North complex. Here too, there is a noticeable trend of changing zoning and freeing up land along new transportation routes.
Herzliya - Despite relatively high prices, there are still areas in the city that have not yet been utilized, especially in eastern Herzliya. Future planning for additional residential areas and the light rail that is expected to pass nearby increase the potential for improvement.
Even Yehuda - A community settlement that has become a sought-after destination in recent years. Future plans for the expansion of the settlement and its proximity to major transportation routes make it an opportunity at a relatively affordable price for the Sharon region.
Rishon LeZion - one of the largest and most developing cities in the center, with regenerating areas in the west and north of the city, such as Nahalat Yehuda. Demand for investment land is increasing, especially around the new employment areas and the train station.
Investing in land in the north of the country is suitable for those looking for real improvement potential at a lower entry price.
Haifa - The city is undergoing significant urban renewal projects, from the downtown area to Neve Sha'anan. Add to this the development of the port, the high-tech zones, and the construction of a new metro line, and you get an environment with promising potential for land investment.
Hadera - One of the fastest growing cities in Israel. Proximity to the railway, Shefayim and the coastal road, alongside new construction projects in the east of the city, make Hadera a particularly attractive destination for investors.
Binyamina - A quiet community with a high quality of life, which is beginning to attract the attention of entrepreneurs and investors. Its location between Hadera and Zichron Yaakov, and its proximity to railway lines, position it as an area with significant growth potential in the coming years.
Ashdod - Ashdod is experiencing a huge development boom, with evacuation-construction projects, an expanding industrial zone, and new accessibility with the southern railway line and the highway to Rishon LeZion.
The city is expected to continue growing east and north, and land in these areas is currently considered a highly sought-after investment.
One of the most intriguing complexes in the city today is the Ashdod High-Tech Park, which is expected to transform the area into a major employment hub.
Check the current planning status of the land or the complex it is located in. Is the land agricultural, cleared, or available for construction?.
Check whether it is close to planned infrastructure such as roads, public transportation, and employment centers that increase the value of the land, as well as to existing residential neighborhoods.
It is important to check experience, previous projects, and opinions of customers who have worked with the marketing company.
See here for full details on what to check before investing in land..
Please note: Investment land can be an excellent opportunity to generate significant future profit, but only if you check all the small details in advance.
It is important to remember that this is a medium-long-term investment avenue, and therefore transparency, professional planning, and legal support are an integral part of the process.
The Land Realization Company is one of the leading companies in Israel in the field of locating, developing and marketing land.
The company specializes in locating land with high improvement potential throughout the country and accompanies investors hand in hand throughout the entire process.
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