A Guide to Investment in Jerusalem Real Estate
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I am happy to provide you with a comprehensive guide to Jerusalem real estate investments.
The guide includes Jerusalem real estate opportunities, where to invest in Jerusalem real estate, yield on Jerusalem real estate, Jerusalem real estate prices, various neighborhoods in Jerusalem.
Jerusalem Real Estate Prices
Jerusalem Real estate prices vary from neighborhood to neighborhood.
Jerusalem is different from many cities in the world.
Jerusalem is built of neighborhoods.
In this respect Jerusalem reminds me of Boston.
If in Boston there are around 23 known neighborhoods then in Jerusalem there are dozens of neighborhoods. The distance from one end of the neighborhood to the other end of the neighborhood is 13 miles and a half-hour drive (of course without traffic jams).
Apartment prices vary from neighborhood to neighborhood. For example, real estate prices in the old Katamon neighborhood can be twice the real estate prices in the nearby Pat neighborhood.
Similarly, the real estate prices of the Givat Hamivtar neighborhood are double that of the nearby French Hill neighborhood.
Jerusalem real estate prices vary even within the same neighborhoods.
Therefore, it is important to understand Jerusalem in depth in order to know where it pays to buy an apartment.
According to the ‘madlan’ website, the average price per square meter in the city of Jerusalem is NIS 26,000 and the annual yield is 2.5%.
Rehavia real estate
The Rehavia neighborhood is very old and famous. It is in an excellent location between the neighborhoods of Nachlaot, Shaarei Chesed and King George Street.
The neighborhood itself was established in the early 1920s. The buildings are built in an Arab style from Jerusalem stone. To this day the neighborhood has managed to retain its special design, with a minimum of construction and some green park areas.
Anyone who wants to buy an apartment in Rehavia should pay attention and make sure he is buying a privately owned apartment or a lease from the State of Israel. Rehavia colony real estate is sometimes not privately owned freehold. This is because the ownership of many lands belongs to a Greek Orthodox church and the tenants only lease (rent for a long period) the ownership of the land from the church. The tenants are therefore nonfreehold.
According to the ‘maldlan’, publication the average price of an apartment in Rehavia colony is about NIS 2.4 million. Average rental price 6,400 NIS.
The average price per square meter is NIS 36,000 and the annual yield per apartment is about 3% per year.
Old City Real Estate
The Jewish Quarter is part of the Old City in Jerusalem.
The other districts are the Muslim Quarter, the Christian Quarter and the Armenian Quarter.
Jews buy almost exclusively apartments only in the Jewish Quarter.
Old city real estate is registered differently than elsewhere.
First, for very many years the apartments in the Jewish Quarter were registered in the ownership of the Society for the Rehabilitation and Development of the Jewish Quarter in the Old City.
The company was established in 1968 after the Six Day War and the occupation of the Jewish Quarter.
Initially, the real estate was registered in the ownership of the Old City Rehabilitation and Development Company. Slowly, the company transferred the registration to the Tabu and today the owners of the rights in the apartments are registered in the Tabu – the Land Registry.
Anyone interested in purchasing an apartment in the Jewish Quarter must understand that there are many restrictions on the sale of apartments.
All the more so as there are restrictions on the sale of apartments to non-residents to Israel. Therefore, you should check the issue in advance with a lawyer who specializes in this.
Ramot Real Estate
The Ramot neighborhood is one of the northern neighborhoods of Jerusalem.
This is a huge neighborhood, one of the largest neighborhoods in Jerusalem.
Ramot colony is inhabited by about sixty thousand inhabitants. It is built on a mountainside and has a large number of districts.
It is interesting to get to know the modern history of the neighborhood. After the Six Day War in 1967, it was decided to annex areas to Jerusalem that would thicken Jerusalem from all directions. And so, the neighborhood was established which greatly protects and expands Jerusalem from the north.
Initially, the population consisted of a secular public, including many immigrants. Over the years, the neighborhood absorbed a large ultra-Orthodox population, with the percentage of ultra-Orthodox residents growing until it reached about 75% of the residents of the Ramot colony.
According to a publication by the ‘Maldan ‘ company, the average price of an apartment in the Ramot neighborhood is NIS 2.1 million, the average rental price is NIS 4,400. The average price per square meter is NIS 22,000 and the average annual yield is 2.3%.
German Colony Real Estate
The neighborhoods of the German colony were built by the Templars (Christians who came to Israel for religious reasons) as early as 1873.
It retained its special design, built with lots of private homes, spacious and quiet.
By the way, the Greek colony, the American colony, old Katamon, Baka and San Simon – all parts that surround (or part of) the German colony.
German colony real estate is prestigious and those who want to buy a house in it should note that the land is private freehold and these are not church lands. This is a problem that also exists in Rehavia, Talbiyeh and other neighborhoods.
According to information on the ‘madlan ‘ website, the average price of an apartment is NIS 3.8 million, and the average rental price is NIS 6,500.
Baka Jerusalem Real Estate
Baka, Jerusalem is a neighborhood in south Jerusalem. By the way, the word Baka comes from the Arabic word which means plain.
This is a small neighborhood of about 13,000 residents, where religious, traditional and secular people live.
The neighborhood is old and was built in the late 19th century near the train station. During the 1920s, Arab houses were built in the neighborhood.
According to the ‘madlan’ website, the average price of an apartment in the Jordan Valley is NIS 2.3 million, the average price for rent is NIS 5,600. The average price per square meter is NIS 28,000 and the average annual yield is 2.8%.