Updated: Mar 9
Home prices are on the rise and Jerusalem tackles housing shortage.
Housing Prices Rising Again
Although housing prices dropped between October and November 2019, they were 3% higher than in 2018. The most significant increase in costs was in Tel Aviv, where prices rose by 5.7%. The hope for a declining price trend that characterized Tel Aviv in 2018 has apparently come to a halt.
Prices in the Jerusalem area did decrease by about 14%, seemingly as a result of the Buyer Fixed Price Plan. In Tel Aviv, where most of the buying was through the open market, housing costs were not affected.
It is unclear as to where the housing market is going. While the housing prices are likely to continue rising due to the current political paralysis, it is hard to say what will happen after the elections.
Recent reports show that home sales were higher in 2019 than they have been in over 20 years. The past year showed a 42% increase in home purchases, according to the Central Bureau of Statistics. Ramat Gan led the way with 1,583 new homes sold.
Jerusalem Construction Boom
There is a lot in store for Israel's capital. Jerusalem is getting a makeover as fast trains, new roads, tunnels, sidewalks, and new housing aim to turn the ancient city into a modern, bustling center.
The lack of housing in Jerusalem is a well-known problem. In an attempt to tackle it, the city approved the building of 10,000 housing units and 3,000 additional construction permits.
A project in the Beit Hakerem neighborhood involves building 400 new apartments. In Mordot Arnona, located in southern Jerusalem, there are plans to build 1,800 housing units with green areas. In another project called "Rekhes Lavan" 5,500 housing units are set to be constructed.
The Housing Ministry recently filed a request to construct 9,000 Israeli homes in Atarot. The area is currently an industrial zone and, despite its eligibility for ample housing, has not been developed due to political factors.
If these new projects are approved, it would be a considerable step towards solving the city's housing crisis.