Accessibility and convenience or density and pollution? | Israel today

Appraisal report commissioned by NATA: In Jerusalem, the light rail contributed to rising prices.

Will this also happen in Gush Dan?

• The light rail on Yoseftal Street in Bat Yam

  Photo: 

  Imaging: NATA

Produced by the Department of Special Supplements

A light rail increases the value of the properties bordering it - according to a report examining the effect on housing prices along the route of the light rail in Jerusalem.

The report was prepared for Nata by real estate appraiser Ohad Danos and Yaron Lahat.

The data show that the prices of properties bordering on the light rail have risen beyond the general rise in prices in the city.

These findings are controversial against the background of the lawsuits filed against Nata in Gush Dan, alleging a decline in property value following the approval of the Green and Purple Line plans. The traffic near their homes.

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The main argument that emerges in most lawsuits is that proximity to the route or the RKL stations may be positive, but an actual physical launch (required as a threshold condition for filing a lawsuit under section 197 of the law) is likely to harm the value of the assets.

The real estate division of Nata, under the management of Adv. Inbal Kanka, decided to examine the matter in depth and examine transactions conducted along the route of the light rail in Jerusalem, in comparison with repeat transactions in the same apartments.

This is a quality test and not a statistical one.

It is assumed that there will be a similar effect on properties along the route of the RKL on the green and purple lines.

As part of the inspection conducted by the appraisers Danos and Lahat, praise tax reports were sampled for double and more transactions, which faithfully reflect the property data.

According to the appraisers, this comparison neutralizes the matching coefficients required in other types of surveys.

84 transaction files were located in 38 different plots, with properties sold more than once, between 1998 and 2020.

In all cases, a significant nominal increase in apartment prices was found along the route.

This is an increase in rates between 1.69% and 258.8%.

The most significant rate of increase is after the operation of the RCL in Jerusalem in August 2011. This is an increase of 14.29% to 172.63% in a relatively short period of time.

After deducting the changes in the general market, a real increase can be seen in the vast majority of clusters along the route, in the range of 0.07% to 129.75%.

Only in 6 files did there be a real decline.

Segmentation of data by proximity to the RKL stations compared to proximity to the route, showed that contrary to popular opinion, the rate of clusters with a real decrease in transaction prices in the vicinity of the stations is low in relation to the proximity to the route (3% vs. 9%).

"We do not find a visible reason for the different behavior of the real estate market in Tel Aviv and in the central region in general," concluded Adv. Inbal Kinka.

"The study proves once again that a mass transit system contributes to urban prosperity."

Appraiser Ohad Danos added: "Due to the significant parking shortage in Tel Aviv and the young population, it can be assumed that the improvement that will be created for the properties will be even higher than in Jerusalem."

It should be emphasized that the report was commissioned by NTA, which is currently dealing with claims for impairment.

The plaintiffs are apparently backing up their claims with counter-opinions, which contradict the conclusions of the report.

Produced by the Department of Special Supplements