Ten years ago, Jerusalem was just starting to emerge from the Second Intifada, which scared away local residents as well as investors. Many shops and restaurants closed during that period, leaving hundreds of storefronts with “for sale” signs.
Fast-forward 10 years, and Jerusalem feels like a vastly different city. Many trendy stores, restaurants and hotels have opened in the city center; there is a world-class shopping district in Mamilla, as well as the adjoining Alrov residential complex, right next to the Old City; and the suddenly chic Mahane Yehuda open-air market is now a huge tourist attraction.
An equally important sign of Jerusalem’s rebirth is the number of luxury apartment projects being built downtown and elsewhere. Several luxury buildings, some of them high-rises, have gradually changed the skyline and brought a sense of stability and affluence to a city not known for either.
The city has approved several of these high-rises, sometimes to the chagrin of local tenants accustomed to Jerusalem being a low-rise city. The impetus came in 2006, after former Mayor Uri Lupolianski acceded to environmentalists’ pressure to scuttle the Safdie Plan, which would have expanded Jerusalem westward and added 20,000 housing units. Unable to move outward, the city had nowhere to go but up.
In truth, the new luxury homes haven’t made a dent in the city’s chronic housing shortage because the average Jerusalemite can’t afford to purchase one. But no one denies that the projects have created numerous jobs, brought hundreds of millions of dollars in investments and generally improved the city’s atmosphere.
Shay Lipman, a real estate analyst at Excellence Nessuah Brokerage Services in Petach Tikvah, said the city “began to turn around” about five years ago.
“Today, we’re seeing demand from many foreigners, including Russians, who also like Tel Aviv, [and] Americans and Europeans, especially from France and Belgium, partly due to rising anti-Semitism. Many are religious Jews.”
Some Israelis invest as well.
Lipman said buyers may be businesspeople who spend several weeks or months in Israel for work “and want a home base and the high standard they’re used to.”
Others are empty-nesters, often in their 50s and 60s, who want a spanking-new apartment with condo-style services — no more mowing the lawn or repairing the roof — with an on-site maintenance team.
Still others are families with young children who visit Israel regularly, or new immigrants who’ve decided to make their home in Jerusalem.
While most purchase apartments as their second — or third or fourth — home, many eventually use them as their primary residence, Lipman said.
In Jerusalem, the most sought-after properties tend to be within easy walking distance of the Old City and the center of town.
One of the most luxurious projects is King David’s Crown, located across the street from the King David Hotel, directly adjacent to the landmark Jerusalem YMCA building. The apartments, with three, four and five bedrooms and large balconies, have direct underground access to the YMCA sports center and overlook a 1.25-acre park. The buildings feature 24-hour security, Shabbat elevators and a beautiful synagogue.
The homes range from more than $1 million to several million dollars.
Another luxurious property is the Saidoff Houses project, a 23-story residential building close to the Mahane Yehuda shuk on Jaffa Road. It offers 90 penthouses and duplexes (three to six rooms), a pool, spa, gym and synagogue. The views are stunning.
Some of the penthouses in the africa-israel Residences at 7 rav Kook St. cost more than $5 million. Their spacious terraces offer fantastic views of Jerusalem. Photo by Michele Chabin
For sheer location, nothing beats the Africa-Israel Residences at 7 Rav Kook St., a surprisingly quiet street perpendicular to Jaffa Road. The other side of the building adjoins the Ticho House, the famed restaurant, museum and former home of the artist Anna Ticho.
The project, which was jointly initiated by Africa-Israel and Shainfeld Investments, has 131 apartments, including 112 “premium” apartments, eight penthouses and 11 “grand” apartments. The ground floor offers 11 hotel rooms and has 12 retail stores. All of the premium apartments, with one to four bedrooms, have been sold; marketing has begun for the grand ($1.28 million to $2 million) and penthouse homes ($3.4 million to $5.7 million), the latter boasting large terraces.
Despite being in the heart of the city, the building has the feel of an inner sanctum. The apartments are sunny and quiet, and offer marvelous views. The property includes a hotel-standard exercise room, a large event room for tenants and many other amenities, said Dalia Azar Malimouka, a spokeswoman for the residences.
During a tour, she showed two penthouses. The first was unfinished, to enable prospective owners to design the apartment to their taste and specifications. The second, a nearly 800-square-foot apartment with a 155-square-foot balcony, was completely furnished. The wood-decked terrace, which comes with a huge wooden pergola (or sukkah frame), provides a fantastic view of much of the city.
In a phone interview, Oren Hod, CEO of Africa-Israel, recalled the intifada years, “when the city was neglected.” Today, he said, “people feel safe and confident, and you see [this] in the amount of investment” in infrastructure and real estate.
Hod acknowledged the new luxury homes being built in Jerusalem aren’t for everyone: “All of us have a budget, and not everyone can live in the heart of Jerusalem.”