A survey by the Chambers of Commerce and Industry Haifa and the North, entitled “No cranes in Haifa” found that the real estate recession in Haifa is deeper than in the rest of the country. Haifa has the smallest number of building starts among large Israeli cities.
8,749 housing units were built in Haifa in 1996-2004, compared with 14,523 in Tel Aviv, 16,235 in Jerusalem, 15,833 in Beersheva, 14,261 in Ashdod, 10,058 in Rishon LeZion, and 9,983 in Petah Tikva.
A comparison of residential building starts between Haifa and the nearby areas of the Krayot, Nesher and Tirat Hacarmel found a significantly greater decline in building starts in the city of Haifa than in the Haifa region as a whole. The survey also found that the situation in the Haifa region was worse than in the Northern region and in the country as a whole.
The survey found that housing demand in Haifa fell 15% for privately built apartments in 1998-2005 and 64% for public housing. The demand situation was worse in the city of Haifa than in surrounding towns. As a result, apartment prices in Haifa fell steadily in 2000-05. Apartment prices in Haifa in 2005 were lower than in 2000, compared with any other part of Israel.
The Chambers of Commerce attributes the weakness in housing demand in Haifa to the fall in the city’s population, which continued in 2005, and to the aging of its population, relative to other cities.
Chambers of Commerce and Industry Haifa and the North president Oded Feller said the survey’s findings reflected the drop in business activity in Haifa, which has continued for years. The drop has caused high unemployment rates and caused young people to abandon the city. Feller also serves as chairman of the economic organizations liaison committee.
Published by Globes [online], Israel business news - www.globes.co.il - on June 15, 2006
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