Tuesday, March 20, 2012

187,000 new apartments for Israel


It is not a secret that there aren't enough affordable apartments in Israel. Now the government decided to build another 187,000 new apartments and rent them out for reasonable prices. Who believes that, as real estate agencies as well as constructors have already put their eyes onto the new future apartments. Israel's real estate market means plenty of money and nothing is being sold or rented out cheap. The opposite is the case: Estate prices and rents are continuing to rise and there is no end at sight. 

Last Friday, I saw an offer in the Israeli paper MA'ARIV: 

67 squaremeters, 3rd floor, downtown Tel Aviv, King George Street, for 5800 Shekels per month (approx. 1550 $).

I would call this offer THEFT ! Nevertheless, rents at the coastal line and Tel Aviv area are just skyrocketing. But not only cities like Tel Aviv, Herzliya, Ra'anana, Rishon LeZion or Rehovot have high costs of living; even in the formerly cheap Zfat (Safed) in the north, prices keep on jumping. More and more Americans are planning to move in and this is what causes the rents to go up. 

Today I checked prices and found out that Jerusalem insn't that expensive at all compared to the coast. However, it turned out that rents in the Nachlaot neighbourhood have just climbed incredibly. Probably also due to the many Americans moving in. It is good to be central in Jerusalem but Nachlaot has just become far too expensive. The funny thing is that many apartments there are old, wrecks and have a leaking roof.

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