Study: Lower home prices - build smaller homes

Eldar Projects Marketing: Housing starts of three-room apartments are declining, even as demand for them is growing.

The formula for lowering housing prices is to build small three-room apartments, says Eldar Projects Marketing Ltd. in a new study. Eldar found that housing starts of three-room (generally two bedroom) apartments are declining, even as demand for them is growing from both investors and young couples who cannot afford four-room or larger apartments.

The Central Bureau of Statistics reports that the number of housing starts of three-room apartments has been falling for a decade, falling from 8,001 in 2000 to 1,523 in 2008, and just 472 in the first half of 2009.

The dearth of small apartments is seen in both private and public building (apartments built at the initiative of the Ministry of Housing and Construction). Three-room apartments accounted for just 4.6% of all housing starts in the first half of 2009, compared with more than 30% in 1997-99.

Published by Globes [online], Israel business news - - on November 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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