Jerusalem Apartment Sells for 3.1 Million Shekels Amid Renewal Plans
An old 3-room apartment in Jerusalem's Katamon neighborhood was sold for 3.1 million shekels, driven by strong investor interest in a planned pinui-binui urban renewal project.
In the old Katamon neighborhood of Jerusalem, an old 3-room apartment measuring 67 square meters on Hezekiah HaMelech Street was sold for 3.1 million shekels. The apartment is located on the first floor and lacks a balcony, secure room (mamad), or parking. However, the building is part of a planned pinui-binui (evacuation-reconstruction) project involving four buildings, currently in the deposit stage. Upon completion, the apartment will gain 28 square meters, a secure room, a 12-square-meter balcony, and a parking space. The asking price was 3.3 million shekels, and the property was on the market for about a month.
High Demand Despite Long Horizon
Shahaf Avitan, a team leader at RE/MAX Shiraz Real Estate, noted that despite the property's age, demand was exceptionally strong. "We received seven offers within a week," he said. "Even after the buyers and sellers entered into negotiations through lawyers, we continued to receive higher offers, though it wouldn't have been ethical to pursue them."
"I believe it will take quite a long time for the project to get underway—about six years until evacuation and another three to four years of construction. Nevertheless, people saw the potential and paid more because of the project's current stage. I believe a similar apartment without a project plan would have sold for around 2.6 million shekels."
Market Trends and Recent Transactions
Neighborhood prices reach 43,000 to 46,000 shekels per square meter. Avitan added that while there are price drops in Jerusalem, the transaction pace remains high, balancing the market. Recent transactions across the country include a 4-room apartment in Kfar Shalem, Tel Aviv, sold for 2.53 million shekels, and a 4-room apartment in Kiryat Bialik sold for 2.04 million shekels.
