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Housing prices: The test is in urban renewal Israel today

2021-11-22T21:10:26.907Z


After the Minister of Housing and the Minister of the Interior clarified that their goal was to increase the rate of land marketing very significantly • It is clear that this will not happen so quickly


It is difficult to understand what the Minister of Construction and Housing is complaining about.

He claims that the developers and contractors participating in the tenders are closing prices that are too high.

And what should they do ?!

Had the law allowed this, perhaps they would have convened in advance and agreed on the maximum price that was right to pay.

Maybe they would just split the auctions and be able to win low prices, which are close to the minimum prices in the auctions - so the prices could definitely moderate.

But Minister Ze'ev Elkin, like other price-complaining parties, knows that the law prohibits such coordination, so the tender is closed for the most part.

The allegations against the Israel Lands Administration are also puzzling.

We do expect the administration to sell the state lands at a great price.

What is the other option of the administration?

Distribute land to whoever sees it?

Set a price for the land itself?

The only ones who can change the land allocation method are the chosen ones, and marketing that is not according to market laws may turn out to be more problematic than the current method.

After the Minister of Construction and Housing and the Minister of the Interior lamented the situation, they clarified that their goal was to significantly increase the pace of land marketing.

Obviously this is the only way to deal with the high prices - and it's also clear that it will not happen so quickly.

In the central region of the country the solution is only urban renewal.

This government will be tested in its ability to accelerate the pace of urban renewal.

Urban renewal is important at the national level - strengthening buildings is a strategic matter.

Other than that, it is the only way to match supply to expected demand in the coming decades and challenge immigration absorption.

Source: israelhayom

All news articles on 2021-11-22

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