Landscape destroyed, property value down
Known as 'little Switzerland' until not long ago, Carmel range views increased property values which may see decline of 20-40% after wildfire
The most extensive blaze in the State's history – the financial damage: The Carmel Forests, which were dubbed "little Switzerland" until not long ago and considered one of the country's most beautiful sites, offered pastoral views scattered with idyllic towns and villages.
Now, when so many green trees have become blackened with soot after three days of raging wildfires, the region will suffer real estate damage too.
"The damage could reach some 20% to 40% of the value of properties which had enjoyed great views," says Haim Etkin, registered evaluator. "It all depends on the area."
Spectacular views have become a crisis zone
"The value of a property is the total of all the benefits it has," he adds. "They could be physical and tangible, like parking space or an elevator, and they can be visual, like building style, form of construction or view. This is one of the foremost property value coefficients."
The Carmel range, he says, is known for its breathtaking views to the north, south and west. "The view hasn't simply disappeared," he says. "It has become black. In other words, the damage is not just that the view has gone; there is also serious ecological damage, because the woods also produce oxygen. A lot of soot in the air will enter homes and trouble the residents. All this reduces the value of the properties."
"Imagine a circular park surrounded by buildings," he says when asked how the damage can be quantified. "The apartments enjoying views of the park are worth 15% to 20% more than the apartments on the rear side… Multiply all the apartments which enjoy views of the park by the value of the apartments, and this is the value of the park itself."
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