Housing prices soar in haredi sector

'It is particularly the haredim, who have a critical shortage of housing, who suffer from every fluctuation in the market.'

Ben Shaul ,

Ramat Shlomo
Ramat Shlomo
Flash 90

Data published by the Central Bureau of Statistics this week showed that housing prices in Israel are continuing to rise with the cost of apartments in April and May going up by 0.5% compared to previous months.

The data indicate that the government efforts to lower housing prices have ceased to influence the market and since the beginning of the current year there has been a continuous trend of a rise in costs. The cost of new apartments, which has fallen on an annual basis, are also rising again.

The statistics are particularly worrisome for the haredi public since the main price increases were in peripheral areas where new construction for haredim is taking place. For example, in the northern district, where construction is taking place for haredim in Tiberias, Afula and other cities, there was a 5% increase in house prices - the most dramatic increase. In the Haifa area, which includes Harish, a dramatic price increase of 2.4% was recorded.

Alongside peripheral and economically weak areas, there were also significant increases in the Jerusalem area, where several neighborhoods and large projects were also built for the haredi public in Jerusalem and Beit Shemesh.

At the same time that housing prices have increased, there has also been a sharp decline in apartment sales. This phenomenon suggests a general slowdown in the market and the wishes of the developers and contractors to make new calculations before carrying out new projects in light of changes in demand for new housing.

"Recently, many buyers prefer to sit on the fence and delay purchasing an apartment," says David Margaliot, CEO of Yoadim - Project and Production Management. "It is particularly the haredim, who have a critical shortage of housing, that suffers from every fluctuation in the market. The Tzameret summit, which will take place next week, will include all the relevant parties - the Minister of Interior, the government ministries, the entrepreneurs and the contractors in order to find creative ways to alleviate the housing shortage for the haredi public."