.svg){kind=icon}
.png)
What exactly is the "right to housing"?
A right to an apartment is a proportional share of private land, from which a residential apartment is expected to be built in the future - in accordance with existing or future planning plans.
Meaning:
- There is no apartment number.
- No floor, direction or specification
- There isplanning potential, defined from a planning-statutory perspective.
In practice, the right represents the investor's share of the basket of future construction rights for the entire complex.
How did the right to an apartment arise?
It all starts with land – usually agricultural land or land with a future residential zoning. The land is located within a planning area designated for development (neighborhood, district, large complex).
When a master plan or detailed plan is in progress:
- The number of housing units in the complex has been determined.
- Density, uses, and mix are determined.
- The land is "translated" into building rights
How many square meters of land are equal to one apartment?
Stages of Development: The Right To A Real Apartment
This is a gradual process. At each stage, the value and recognition of the right changes:
Groundwork phase – conceptual-planning
- The land is not yet available for construction.
- The value is relatively low | The right is only conceptual
Advanced Planning Phase – Increasing Certainty
- The plan is submitted or approved | High certainty for the number of apartments
- This is where the first jump in value usually occurs.
Unification and division
- Reparcelling | Translation into concrete and tradable rights
Realization – the asset becomes tangible
Sale to an entrepreneur, combination deal or self-build.Here the right becomes a tangible asset.
So why is it worth money?
The gap between the price of land with a future right and a built apartment is where the profit is created.
Investors who enter early:benefit from a low price and high improvement potential at every planning stage.
Example from the field: The right to an apartment in reality
In2013Uri purchased agricultural land in Sharon for 260,000 NIS.
Planning progress
The plan was submitted, density increased, and saturated construction was defined.
Implementation – Two Options
A: Sale to the entrepreneur: 2.5 rights ≈ 2,000,000 NIS (profit approx. 1.74M NIS).
B: Combination: Uri receives one built apartment worth approximately 2.4-2.7M NIS.
The Bottom Line
The right to an apartment is not an apartment –but it is the smart way to get to it.
Important note: The content is general and for illustrative purposes only. It does not constitute investment advice. Perform specific tests before investing.
