A group of US and South African Jews has bought a nine-dunam (2.25-acre) site in the Givat Shaul neighborhood of Jerusalem for $23 million, on which they plan to build more than 300 apartments for the haredi (ultra-orthodox) community. The price amounts to $77,000 per land per apartment.
The investors will submit a plan to consolidate the lots in order to build nine buildings with 34,000 square meters of residential space alone. The total investment in the project will reach NIS 200 million and proceeds are expected to exceed NIS 300 million, leaving a net profit of around NIS 70 million.
The haredi community accounts for a substantial part of the Jerusalem housing market, but few haredim can afford to buy the luxury apartments that have been built in the city in recent years. As a result many haredim are moving to Beit Shemesh, and the settlements of Betar Illit and Upper Modi'in, where prices are lower.
Haredim who are still buying apartments in Jerusalem are mostly foreign residents, who tend to congregate in the western neighborhoods of Givat Shaul, Har Nof, and Romema. 3,000 apartments are currently planned for Romema alone, and demand for apartments there by foreign haredim has reached a peak in the past three years.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2008
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