Mayor unveils affordable housing plan in Jerusalem
Posted on 14. Jun, 2010 by Buy-It In Israel Staff in Israel Real Estate
Real Estate in Jerusalem ©iStockphoto.com/Amit Erez
Jerusalem Mayor Nir Barakat this week announced a municipal housing plan aimed at increasing the possibilities for young couples and students to find affordable housing in the capital.
Under the terms of the “20:20:20″ plan, which was unveiled by Nir Barakat on Sunday, 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.
“Young people are the oxygen for the future of the capital. I am confident that the new plan together with other reforms in education and for businesses will help stem the flow out of the city,” said Nir Barakat.
Over the past two years, property prices have been skyrocketing in Jerusalem making it very difficult, in particular for young couples, to buy an apartment in the capital. As a result many residents, in particular young couples, in the capital were forced to find more affordable housing elsewhere.
The new municipal plan for affordable housing is specifically targeted to enable young families to purchase property in Jerusalem and bring them back to the capital. Under the conditions of eligibility to the new plan, affordable housing will be available for young couples, where one of them is 41 years-old or younger, employed and who do not own additional property in the city.
The development of the plan is still subject to the approval of a number of government and municipal bodies, and therefore it may take a couple of months before it can be implemented.
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