The housing crisis, drastic price increases, barriers to urban renewal projects and the lack of housing supply - these are just some of the issues discussed at a conference held yesterday (Monday) at the initiative and lead of "Real Estate Today" editor Ofer Petersburg.
During the event, which dealt with the issue of "renewable cities", mayors and senior figures in the real estate world spoke, and gave their opinion on the "housing crisis where"? And how some of the challenges and market failures can be solved.
"The government needs to change disk and understand, as it supports the activity of new construction in cities, so it must do in urban renewal projects," said the head of the Urban Renewal Authority Elazar Bamberger.
Bamberger called for the incentive for local authorities in renewal projects: "We first crossed the line when we received a budget of about half a billion shekels to be transferred to 12 local authorities where there is potential for significant construction in urban renewal. From our internal discussions, I can say "Standing at NIS 25,000-30,000 for every building permit issued by a municipal authority in these projects is not enough, and it should be increased to about NIS 50,000. All projects should be completed with dignity, without putting the municipal authority in economic challenges."
The event was attended by 14 mayors from the center of the country, including Or Yehuda Mayor Liat Shochat, Rishon Lezion Mayor Raz Kinstlich, Raanana Mayor Haim Broida, Lod Mayor Yair Revivo, Beer Yaakov Mayor Nissim Gozlan, Givatayim Mayor Ran Konik and others.
All the mayors came out with a common message that apartment prices are rising indiscriminately, and despite talk of resolving the housing crisis, the government has no real intention of doing so and no one is taking the reins.
"There is a sense that there is a 'directed hand' that seeks to take the opportunity from our children to purchase an apartment"
The mayor of Kiryat Ono, Israel Gal, directly criticized the government and the solutions to the acute housing crisis
:
"We are changing the housing habits in Israel and soon many will have to find rental housing solutions, they will no longer own apartments. "The opportunity from our children to buy an apartment, and the question is do we agree to it? Everyone ends up benefiting, the government, Remi, the developers and also the apartment owners in a sense - but I do not shy away from that."
The mayor of Kiryat Ono, Israel Gal: "Soon many will have to find rental housing solutions, they will no longer own apartments", Photo: Shachar Ziv
The president of the Builders' Association of Builders, Raul Srugo, focused on the excessive land prices fueling the housing crisis: "Housing prices have risen because of land tenders, so today each tender closes at a record price 2 or 3 times higher than its predecessor. We propose to the government to freeze all land prices and market all 300,000 existing housing units at an average and sane price."
"Prices in the city of Lod are almost unattainable," added the mayor of Lod, Yair Revivo.
"When I was elected to my position 9 years ago, land for a housing unit was worth NIS 80,000 and today, even after disturbances, the value of land for a housing unit exceeds NIS 1 million, so a new apartment sells for NIS 2-3 million on paper. At least there are long-term rental housing projects. "
The Mayor of Rishon LeZion, Raz Kinstlich, Photo: Shachar Ziv
In a similar vein, the mayor of Beer Yaakov, Nissim Gozlan, also said: "When I was elected to the land positions in Beer Yaakov, it was worth zero, and today the value of land for a housing unit exceeds NIS 1 million.
5-room apartments are being sold for NIS 3 million, and people are attacking. "
"Prices are insane, and an apartment does not last more than 7 minutes," added Ramat Hasharon Mayor Avi Gruber.
"Penthouse apartments are being sold for NIS 15 million and more and are being hijacked. There is no housing failure, there is an infrastructure failure and there is a government in hysteria, with the composition changing every few months. The solution to housing prices in Israel is not in Gush Dan."
Givatayim Mayor Ran Konik: "We need to decide that this is a national crisis and establish a single body that will include all the problems and subordinate bodies."
Givatayim Mayor Ran Konik.
"We need to decide that this is a national crisis and establish one body that will include a treatment center,"
Daniela Paz Erez, founder and owner of Paz-Erez Economics and Engineering, described another crisis occurring in the market: "Today our country is 'blown up' and many developers are having difficulty finding apartments for rent for tenants in eviction-construction projects. There are developers here waiting months for their project That they did not find apartments for rent. "
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