News Brief 10/26/2010, Cheshvan 18, 5771
Attias: Freeze Factor in Home Costs
In an interview Tuesday, Housing Minister Ariel Attias said that a portion of the blame for the past year's sharp rise in real estate prices in Israel lay with the imposition of the building freeze in Judea and Samaria. “When you remove 5,000 apartments from the marketplace you reduce the amount of available homes, and that certainly does not help to lower prices,” Attias told Yediot Achronot. Although during recent years some 3,000 unis received building permits in the region, there were generally about 2,000 units under construction in Judea and Samaria from previous years, and the full 5,000 units had an impact on prices.
Attias said that the freeze's most direct impact was on housing prices in Judea, Samaria, and Jerusalem, but that it was a contributing factor elsewhere as well. “The average home price rises when there is a sharp rise in a specific area, so apartments are more expensive for everyone. In addition, there are many places within the green line where prices are directly affected by what happens in Judea and Samaria. Anyone who wants to live in Jerusalem has considered Maale Adumim as an option, and that option lowers prices in Jerusalem.” he said.