anyone who purchases property in the central locations of Jerusalem can rest assured that they invested their money safely
Rising real estate prices in any city is typically a symptom of a growing economy, higher salaries and most of all, an optimistic attitude of the population. People purchase homes for they believe in the future prosperity of the city. The current enthusiasm in real estate purchases in the world's holiest city, Jerusalem, indicates not only the above but much more. The modern state of Israel is an anomaly among the community of nations. Unlike other lands that were developed for the purpose of livelihood, Israel was developed as a homeland for the Jewish people. Zionism, rather than material prosperity, was its driving force and even though the goals of the country seem to have shifted to the same goal of other nations once the state was established, the Zionist objective remained alive.
This objective finds expression in the recent rise of real estate prices and the high volume of sales in Jerusalem. Prices have risen in the last three years due to foreign residents who are buying mostly to fulfill a Zionist aspiration. Properties in the nation's capitol are being purchased by French, English and American Jews. Some are making or planning aliya, while others are simply buying because they are proud to own a home in Jerusalem. The customers are not naïve romantics buying homes at any price, but rather they are tough and discerning consumers, knowledgeable and aware of price and quality.
Jack Hazut
The most attractive locations to foreign buyers are all the neighborhoods surrounding the center of town, Talbia, Rehavia, Nachlaot, German Colony, Katamon, and Baka. Some Haredi neighborhoods are sky-rocketing as well, such as Gush 80, Ramat Eshkol and especially Shari Hessed, where prices are among the highest in the country. Even the neighborhood of Musrara, which until recently has been considered the slums, is attracting many Americans due to its proximity to the center of town and the Kotel, prices there are escalating as well. In fact, all the neighborhoods desirable to foreigners are within a thirty to forty minute walk to the Kotel.
It’s commonly said that the best three reasons to buy real estate are “location, location and location.” Certain locations in the world are considered desirable positions for a home, such as beach front property. Although Israel has a bit of beach front property along the Mediterranean, this type of property is not unique. There are many similar properties in the world. However, Jerusalem is unique. There is only one Jerusalem. There is only one Kotel. This ideal of being close to the Kotel translates, in practical terms, to high prices.
Judaism is expensive. A Jewish home by definition is more expensive than a non-Jewish home, thanks to meat and milk kitchens plus the appliances, Passover dishes, and sometimes Passover kitchens, Sukkah plus the area for the Sukkah, Torah libraries and hand washing stations (nitilat yadaim) for bread. Jewish neighborhoods are usually more expensive than non Jewish areas, for there is a particular urgency for Jews to be close to the local synagogue, kosher stores and Jewish schools. It stands to reason that if people are willing to pay more for the privilege of being in a Jewish neighborhood, they would certainly be willing to pay more to merit living in the spiritual capital of the Jewish people.
Therefore, anyone who purchases property in the central locations of Jerusalem can rest assured that they invested their money safely, for although, prices may decline for a short period, (although there are no indications presently of a price decline) eventually they will rise again, for Jerusalem is the eternal capital of the Jewish people. There is only one Jerusalem and only one Kotel and in the near future, please G-d, there will be only one Beit Hamikdash.
This is the first piece on real estate in Jerusalem. In the coming weeks we will give more practical information and advice concerning the Jerusalem real estate market. Our next article will discuss prices.