Israeli minister touts Gaza 'real estate bonanza' as postwar division talks draw international scrutiny

Israeli far-right Finance Minister Bezalel Smotrich said the Gaza Strip could be a "real estate bonanza" and that he was in talks with the United States about dividing up the territory after the war, a proposal that drew renewed international backlash. Speaking at an event in Tel Aviv, Smotrich said, "a business plan is on President Trump's table" and added, "We've done the demolition phase... Now we need to build." The comments come as Israel's war in Gaza has inflicted widespread destruction and raised questions about future arrangements for the territory.

The remarks echo a broader debate about a possible postwar framework for Gaza and the broader West Bank. In February, former President Donald Trump floated plans for the United States to take "a long-term ownership position" over Gaza, describing it as the "Riviera of the Middle East." The idea would involve the displacement of Palestinians and was condemned by Palestinians, Arab states and much of the international community as a violation of international law. The White House later signaled that Trump’s proposal was not advancing, with Trump describing it as a concept that was embraced by some but criticized by others. Still, reports in recent weeks suggested a version of the idea remained under discussion and could involve a decade-long U.S. trusteeship while Gaza is developed into a tourism hub and high-tech manufacturing center, administered under a U.S. framework.

U.S. and Israeli officials have repeatedly said any postwar Gaza plan would be voluntary for residents, rather than a forced relocation, but the proposals have fed anxieties about collective rights and international legality. The BBC reported that U.S. officials were pressed for clarification on Smotrich’s remarks, and the BBC has reached out to the U.S. State Department for comment on the minister’s statements.

The remarks come amid a humanitarian catastrophe in Gaza after Israel’s military campaign, which has involved heavy air strikes and widespread demolitions. The United Nations has reported that 92% of housing units in Gaza have been damaged or destroyed, 91% of schools will require full reconstruction or major rehabilitation to be fully functional again, and 86% of cropland has been damaged. The UN estimated in February that rebuilding Gaza would cost about $53.2 billion over the next decade.

Smotrich also has a long record of hard-line proposals regarding the West Bank. As leader of Israel's Religious Zionist party, he has faced sanctions from the United Kingdom and other countries over repeated incitements against Palestinians. He has asserted control over planning in the West Bank, pushing expansionist policies and, in August, unveiling a plan to annex roughly four-fifths of the territory. He said the plan would apply Israeli sovereignty to about 82% of the West Bank, insisting it aligned with the idea of "maximum land with minimum Arabs". Israel has built about 160 settlements housing some 700,000 Jews in the West Bank and East Jerusalem since the 1967 war, land Palestinians regard as the core of a future state alongside Gaza. About 3.3 million Palestinians live in the West Bank and Gaza combined, many of them in areas under tight Israeli control.

The Gaza war began in response to Hamas’ attack on Oct. 7, 2023, in which about 1,200 people were killed and 251 were taken hostage. Since then, the Gaza health ministry has reported at least 65,062 people killed in Israeli attacks, with women and children accounting for a substantial portion of the casualties. A UN commission of inquiry this week concluded that Israel had committed genocide against Palestinians in Gaza, a charge the Israeli government has strongly denied. The full implications of any proposed postwar framework remain contested among international actors, regional powers and the Palestinian leadership.

The remarks by Smotrich, who wields significant influence over planning and settlement policy in the West Bank, underscore the enduring tensions over how to redefine borders, sovereignty and the rights of displaced people in a region still reeling from a decade-long conflict critical to regional stability.