The Housing and Construction Ministry has decided to market plots for the construction of over 2,500 housing units in Jerusalem, Yedioth Ahronoth newspaper reported on Thursday.
Housing and Construction Minister Ze'ev Boim estimated the project would even bring about a drop in prices, making new apartments in certain areas cheaper than regular apartment prices.
According to Boim, the tenders should end by February 2009. "We cannot let the economic situation bring the construction market to a standstill," said the minister, who believes the project will also strengthen the capital's standing.
Boim, who also acts as the Israel Land Administration council chairman, ordered the Administration to begin marketing housing units in Jerusalem this week, and it was decided to market over 2,500 units to contractors in an intensive manner.
The economic situation is a great opportunity to bring young people back to the city, said Boim, since the new units will bring down prices and make the city more attractive.
The project will start with 380 housing units in the Kiryat Yovel neighborhood. The contractor offering the lowest price will win this tender.
Boim said this system would ensure apartments were built at the lowest possible prices, which would make their selling prices more attractive to young buyers.
According to Boim, one of the main purposes of this project was to combat the negative immigration to the city, which has been going on for some years now.
"We will not let the economic crisis worsen the city's situation," Boim said. "This is a strategic decision for the future of the city. This is a worthy gift to the mayor-elect, Nir Barkat, who will certainly also join in the effort to strengthen the city's standing."
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