Jerusalem apartment prices rose an average of 13 percent from 2007-08 to the present, according to a report published by Anglo-Saxon Realty — comparable to the nationwide 10%-20% increase.
The report covers chareidi areas in the chareidi core, leaving out outlying neighborhoods such as Bayit Vegan, Har Nof, Ramat Shlomo and Ramot, as well as neighborhoods in the process of "charedization," such as Neveh Yaakov, Kiryat Yovel or Gilo.
The report is based on apartment sales, and land tax and capital gains tax data available to the public, showing real-estate transactions from January 2009 through April 2010.
The average price for a three-room (i.e. two-bedroom) apartment in Jerusalem is $340,000 (NIS 1.3 million). A four-room apartment now costs $452,000 (NIS 1.75 million).
The biggest leap in prices was recorded in Makor Baruch, where prices shot up 26 percent. The average three-room apartment in Makor Baruch sold for $384,000 (NIS 1.5 million). Price increases in Geula were similar.
In contrast, Ramat Eshkol, Sanhedria Murchevet and Arzei Habira posted decreases in apartment prices, which was attributed to the weakening of the dollar between 2007-08 and the present; when taking into account the deterioration of the consumer price index, a nominal 10-percent increase actually attests to a 9-percent decrease in real value.
The most significant decreases were seen in neighborhoods where foreign residents were the most likely to buy: Sanhedria Murchevet, Ramat Eshkol, Maalot Dafna and parts of the prestigious sections of north Jerusalem, such as Kiryat Belz, which suffered notable decreases.
Other neighborhoods, such as Makor Baruch, Neveh Tzvi and Kerem Avraham rose very substantially, in part due to the relocation of social centers, etc. to these areas.
In general the price increase for Jerusalem apartments was less pronounced than other parts of the country because apartment prices in the capital reached a high level before the current wave of price increases began.
Click here to see the table
