Jerusalem municipality approves affordable housing plan
Posted on 12. Dec, 2010 by buyitinisrael in Israel Real Estate
Gilo, Jerusalem
The city of Jerusalem has given initial approval for the construction of a private residential Israel real estate project in the Gilo neighborhood, which will include affordable apartment units sold at a discounted price to young couples. The local planning and building committee of the Jerusalem municipality approved the construction of a residential building project for 130 apartment units out of which 26 units will be allocated for sale to young couples at a discount of 20 percent of the value of the apartment.
The approval marks the first project under the municipal housing program dubbed “20:20:20″ by Jerusalem Mayor Nir Barakat which is aimed at increasing the possibilities for young couples and students to find affordable housing in the capital.
“This is only the beginning of a revolution and the city of Jerusalem will be at the forefront for the implementation of this model providing affordable housing solutions for a young population full of the potential to enrich the city,” said Nir Barakat.
Under the terms of the “20:20:20″ plan, which was unveiled by Nir Barakat back in June, Israel real estate contractors and builders with plans for new construction projects of more than 20 housing units or more than 2,000 square meters in the capital, will need to allocate at least 20 percent of those units of up to 100 square meters, for affordable housing purposes, that is they will need to be sold at a discount of 20 percent to the market value. The municipality estimates that the plan will reduce the purchase price of apartments by an average of NIS 200,000-300,000. The plan applies to couples in need of affordable housing who don’t own property and where one of the couple is not older than 41 years.
Homes in Gilo, Jerusalem
Separately, the Jerusalem municipality announced short-term plans for the marketing of 3,000 new residential units in the capital over the coming year. New housing units are planned to be allocated mainly in the neighborhoods of Arnona, Givat Hamatos, Ramat Rachel and Har Homa. According to the Jerusalem municipality figures, the city approved construction licences for 1,000 new apartment units in 2010. In the long-term, the municipality has a target of releasing land for the building of 50,000 new homes in Jerusalem over the next 10 years in an effort to boost the population in Jerusalem to 1 million inhabitants. Part of the long-term plan is to develop infrastructure and transportation projects in the city which is expected to serve as an incentive to bring more employment opportunities to the capital. The municipality expects the development plans for the city to be approved until the end of 2013.
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