Israeli minister calls Gaza 'real estate bonanza', says plan is on Trump's table

Israel’s far-right finance minister Bezalel Smotrich said the Gaza Strip could be “a real estate bonanza” and that a business plan is already on Donald Trump’s table as he called the ongoing bombardment “the demolition phase”.

Speaking at an event in Tel Aviv, Smotrich and his audience laughed at the question on real estate in Gaza and “where should the first settlement be” after the war.

“I’m not kidding. It pays off,” Smotrich said after the initial amusement to the question.

Smotrich was echoing a plan first revealed by Trump in February when he had declared the US would “own” the Gaza Strip and develop it as a “big real estate site”.

“There is a business plan set by the most professional people there are and it’s on Donald Trump’s table how this thing turns into a real estate bonanza,” Smotrich said, adding that negotiations have already started with the Americans on how costs will be shared.

“We have paid a lot of money for this war, so we need to divide how we make a percentage on the land marketing later in Gaza,” he said.

“We’ve done the demolition phase, which is always the first phase of urban renewal. Now we need to build. It’s much cheaper”.

The United Nations has estimated that over 90 per cent of housing and schools have been destroyed and over 86 per cent of farm land damaged. The UN estimated in February that the reconstruction of the territory would cost $53.2 billion over the next 10 years.

In February, the US President had insisted he viewed the war-torn Gaza strip as a “big real estate site”, adding the US would “own it”.

A Palestinian boy stands in the midst of rubble after Israeli bombing destroyed a home in Jabalia's Saftawi neighbourhood in the northern Gaza Strip. Photo: AFP

In a joint press conference with Israeli leader Benjamin Netanyahu in February, Trump had declared the US would “take over” the Gaza Strip while the Palestinians living there should leave.

On Wednesday, the European Union proposed curbing trade ties with Israel and sanctioning ministers in its strongest action yet over the war in Gaza, by freezing some €20 million in support for Israel.

"The horrific events taking place in Gaza on a daily basis must stop," EU chief Ursula von der Leyen said.

The commission also called for asset freezes and visa bans on far-right Israeli government ministers Itamar Ben Gvir and Bezalel Smotrich over their "extremist" rhetoric.

Pressure has mounted on the 27-nation bloc to act against Israel over its devastating, almost two-year offensive in Gaza. But reluctance from key member states, including Italy, Germany and Greece, risks blocking adoption.

Under its new proposals, Brussels is pressing to suspend the parts of a cooperation deal that allow for reduced tariffs on goods coming from Israel.

Officials said the measure would hit more than a third of Israel's exports to the EU, worth around six billion euros ($7.1 billion) - including agricultural produce such as dates and nuts.

Italy’s foreign minister Antonio Tajani on Thursday said that any potential EU sanctions on Israel must not harm the civilian population, while reiterating his call for an end to the "bloodbath" in Gaza.

"I repeat it with the utmost clarity: we are firmly opposed to the Israeli occupation of Gaza and any suggestion of forcible transfer of Palestinians from the Strip," Tajani told the Senate.

"What is happening in Gaza is an unacceptable tragedy. This bloodbath must end immediately," he added.

Tajani said Italy would strongly support any new measures against the Palestinian Islamist organisation Hamas, as well as further sanctions against violent Israeli settlers and ministers with "unacceptable positions" on the situation in Gaza and the West Bank.