Here are some highlights of recent happenings in Jerusalem and or Israel related to Real Estate.

Number of immigrants from North America and the U.K. expected to be up 20%

Nefesh B’Nefesh, which runs North American and UK aliya in collaboration with the Jewish Agency, is expecting between 4,500 and 5,000 North American and British Jews to make aliya in 2010, a 20-percent increase over 2009’s total of 4,200.  Source: Jpost.com

Supply of New apartments in Israel lowest in years

According to statistics released in late June, by the Central Bureau of Statistics, the number of "new" housing units on the market in Israel is at the lowest level it has been in several years.  The report indicates that there were 8,991 privately built, "new" homes available at the end of May this year.  This figure represents a 7 month supply at current sales volumes. Source: Central Bureau of Statistics

Kiryat HaYovel to get new apartments

The City of Jerusalem, plans to build 266 new apartments in the southwestern Jerusalem neighborhood of Kiryat HaYovel.  The project will be a "vacate and build" project at the 22-dunam (5.5-acre)  Zionism compound in Kiryat Hayovel. Once the plan is approved, by the Building Commission, the 64 present residents will pick a contractor to build the project and will be eligible for either a new apartment in the project, another apartment elsewhere, or a cash payment. Source: Globes online

Israel home price update for May 2010

The average increase in home prices for May in Israel was around 2%, but in several unlikely places, such as Ramle, Lod and Tiberias, prices have risen 11 to 14%.  In Jerusalem prices fell by an average of 1.4%, with bigger apartments dropping more.   The average increase for Israel’s 10 largest cities was only 0.7% in May, similar to April, pointing to price stabilization, at least temporarily.  Source: Haaretz

Jerusalem Mayor announces affordable housing program

Jerusalem Mayor, Nir Barkat announced a program in June that he hopes will help stop negative immigration from Jerusalem. The plan would call for offering apartments to first time buyers, one of whom would have to be less than 41 years old and employed.  The apartments would be sold at somewhere around 20 percent less than market value.  Some of the apartments would be built on land owned by the Jerusalem municipality. Source: Jpost.com

Buyers' interest still high

Warnings about a bubble in Israeli property prices don't seem to have moved buyers: Prices have continued to rise. Rents in most major cities in the center of the country have climbed 3%-6% since the start of 2010.  It seems that even the Bank of Israel's recent statements that it will make mortgages for an amount that exceeds 60% of the value of the property much more expensive have not lowered buyers' interest. The Tax Authority has also announced that it plans to raise the purchase tax on investment properties. Source: Haaretz

Israel apartment prices down slightly