Jerusalem Real Estate
Jerusalem Real Estate |
      
The real estate market in Jerusalem is not influence by the same parameters as pure economics, it is not rational, but moved by forces of emotion and religion. In the three most expensive neighborhoods in Jerusalem – The German Colony, Talbiya and Rehabya, apartments are now more expensive by 50% comparing to their value a few years ago. In the luxury districts like old Katamon and Baq'a the demand for real estate is high and some real estate properties are sold for over a million dollars. The more affordable neighborhoods like Har-Homa and Pisgat-Zeev are mainly populated by young couples. The Jewish-Orthodox community housing is also affected by the drastic raise in Jerusalem real estate prices. Rabbis are ordering their community memebers to purchase assets in certain areas and those neighborhoods become entirely Orthodox. Neighborhoods like Ramat-Eshkol, Ma'alot-Dafna, Ramot and Kiriyat Yovel have seen a raise of 70% in real estate prices and it is estimated that the near by neighborhoods will go the same way. 30,000 housing units are planned to be built in residential building in the entrance to the city. The plan is to keep the delicate balance of Jerusalem demographics and to stop younger, constructive population from leaving the city. The new plan is to build high residential buildings in order to keep a secular majority, since most religious-orthodox chose not to purchase apartments in buildings. But not only secular Jewish residents leave Jerusalem, the average religious person can no longer afford a house in the city and is moving out, but since we are talking about large families with many children, the majority is still religious, which causes a problem because of the education in those demographic groups, which is limited to bible studies, and the ignorance leads to poverty. In ten years, it is estimated that Jerusalem will spread to the west, and according to the behavior of some of the leading Jerusalem real estate agencies, the center of Jerusalem will be the hot spot again in a few years, and streets like Jaffa, King George and the market area will become stronger with the operation of the tram in Jerusalem, scheduled to open 2010. The aim is to bring new residents from cities like Tel Aviv. Many work in Jerusalem and rather stand for hours in traffic rather than moving to Jerusalem. In this sense Jerusalem is not fulfilling the real estate potential it holds for such an historic town. |
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