Us governements do exactly that all the time. the seize land (payting the owners a fraction of the price that is due them) and auction it off to their cronies for huge kickbacks so the cronies can convert the land into upscale apartment homes or shopping malls. They do it every day. There is nothing wrong with the same practice being applied to the unlawfull Arab squatters residing in Israel. Actualy, it works to their benefit as they get a substantial amount for their illegally held Israeli land and can then invest it in their future in muslim lands elsewhere while claiming to the governemnts of their prospective new nations that Israel expelled them and they have no place to go.
High Court: Illegal West Bank homes to be demolished (Haaretz)
from the article: It's wrong to push out Israeli settlers, even if its legal