The demands for residential apartments in Jerusalem in the past three years have reached levels which do not catch up with supplies, according to an analysis conducted by Dr. Rina Degani, research director and managing director at the Geocartography Knowledge Group, who specializes in economic feasibility studies.
"This figure makes the Israeli capital the most wanted city for housing, with only Tel Aviv getting anywhere near this level," says Degani.
| Jerusalem Vicinity |
|
| Thousands of housing units planned in Beit Shemesh / Dotan Levy, Calcalist |
|
Is Jerusalem vicinity town turning haredi? Housing Minister Ariel Atias expects 'real revolution in terms of housing in Beit Shemesh' after ministry joins forces with Israel Land Administration |
| Full story |
|
|
|
According to the data, some 12% of those seeking to buy an apartment want it to be in Jerusalem. In Tel Aviv the demands range around 11%.
The past five years have seen a 40% rise in the willingness to buy an apartment in the capital, although the potential affect of the planned construction in east Jerusalem has yet to be examined.
About half a million Jewish residents live in Jerusalem today, one-third of them belonging to the ultra-Orthodox sector. According to an analysis performed by Geocartography's economic division, the average level of prices apartments seekers are willing to pay is about NIS 1 million (about $251,900). However, the haredi population can only pay about NIS 700,000 ($176,391) for an apartment, with 40% of its members unable to afford even that.
The levels of prices in the city and the limited supply are prompting the population to leave the capital for nearby communities like Mevasseret Zion, Beitar Illit and Beit Shemesh. In addition, the supply of one-floor houses in the city, which attracts wealthy populations, is inadequate.
The most wanted apartment in Jerusalem today has 3.7 rooms, less than the national average but higher than an average of 3.5 rooms in Tel Aviv. About one-third of the apartments in Jerusalem have up to three rooms, one-third have four rooms and about one-third are large or are one-floor flats. The percentage of small apartments in Tel Aviv – up to three rooms – is 50% higher than in Jerusalem.
The building starts in 2008 were lower than the demand, totaling only 1,650 housing units. According to Degani, the general demand for housing units in Jerusalem is about 8,000 units per year, not during times of crisis. She estimated that some 2,800 newly constructed units could be marketed every year, and the rest would be sold as second-hand flats.
Degani believes that the problem in the city is a flawed planning of the types of property approved for construction in the past decade. "In order to develop Jerusalem more apartments must be built for appealing prices, as well as neighborhoods with a touch that suits the basket of demands of the target audiences," she says.
RSS
