Assessment: Housing prices in central Jerusalem climb

If you thought that the projects currently proposed in downtown Jerusalem are expensive, think again. It turns out that the existing high demand for apartments in Haredi neighborhoods in central Jerusalem, along with construction areas which are shrinking and becoming scarce, are jerking prices until the prices offered today in projects built in the area are a "bargain".

The clear indication that we are facing a steep price increase, can be seen in the tender recently published in the Schneller Compound, located in the Geula neighborhood, one of the last lands designated for the Haredi sector in the area. The auction closed at a price of NIS 850 thousand per housing unit. The price is significantly higher than appraisals, which estimated by real estate experts will be translated in four years time - the expected time to the beginning of construction at the site – to about NIS 30 thousand per square meter, in order to justify its economic viability.

Experts note that these prices will be real in a few years, when land in the downtown area will be scarce. For this reason, those looking to buy a house next to the Torah and Hassidus centers in the city, better hurry up to do so in existing projects when prices are still considered to be reasonable and worthwhile.

In the city center of Jerusalem, a number of prestigious projects in the Haredi public are being built, mostly in Romema, such as "Psagot Yerushalayim", "Tnuvat Ha'aretz", "Ha'achuza", "Mitzpe Nof" and more. Marketing of these projects is advancing rapidly when it is clear to everyone that at the end of the marketing, rare land prices which will remain in the area for residential construction, will be much higher. For example, in the "Psagot Yerushalayim" project, promoters present prices that match the current time. The prestigious project located at the corner of Yirmiahu, Shamgar and Brandes Streets (the former 'Kaduri' compound), stars on top of sought after projects in Jerusalem for the haredi public for its prime location, and yet the prices offered in this project are about NIS 25 thousand per square meter only.

In light of the described above, a phenomenon is currently evident in families of housing enhancers in the country, recognize the opportunity to upgrade the quality of their lives by selling their old apartment and purchasing a new one, while the current gap between the sale price of their existing apartment versus a new apartment is still reasonable. In addition, foreign residents who are interested in an apartment in Jerusalem's haredi heart, recognize the future rise and antecedent purchases. According to real estate experts, those who are quick, benefit before the soaring prices and hurry to purchase the last expensive apartments in this area.

'בחדרי' גם ברשתות החברתיות - הצטרפו!