Speaking at the Globes Going Long on Israel investment conference Africa Israel Residence (TASE: AFRE) CEO Ronit Eshed Levy told "Globes" real estate editor Hilit Yanai-Levison about the growing trend of urban renewal.
Which municipalities excel in urban renewal?
"Jerusalem first and foremost. It's a city that has undergone a tremendous transformation. A decade ago, not many companies were operating there. It was very difficult to work in Jerusalem. In 2006/7, when we started buying land in Jerusalem, we were alone. Today, first-class construction companies are competing with us. On some sites, 5 companies are competing with us at the same time. There is a lot of activity in Jerusalem. And it is the city with the most residents in the State of Israel.
"We are in good shape on the sales sites there, because people really want to live in Jerusalem. There are now entire communities from abroad that want to immigrate and live together as a community in Jerusalem. This is largely due to the spirit of the commander in the city: Mayor Moshe Leon and City Engineer Yoel Even, who have created a supportive climate."
Do large companies have an advantage with urban renewal?
"In the last two years, there has been a maturation of projects that took a long time to reach this stage. In urban renewal, there are the best locations. With a mix of uses, these are places people want to live in. Their location is mostly very interesting and very significant. In demolition and rebuild projects, we see a lateral impact: infrastructure is improving, public buildings, and there is a very high-quality product. I think we will see more maturation of urban renewal projects. There is also maturity on the part of the apartment owners themselves. They know how to accept what is possible, and not open an unbridgeable gap (in their demands). And the planning committees have become much more professional."
Housing prices rose 7.7% in 2024. Where will they be in the future?
"My ambition is that my children and their friends will be able to buy apartments in the State of Israel. I don't want to gamble, we operate while maintaining profitability, trying to maintain a price level that will allow for purchases. We have a wide variety of products, and at affordable prices of up to NIS 2 million (in Nesher and other places). In Tel Aviv we also have apartments at higher prices. The trend is relatively clear and I don't want to gamble on it. Everyone needs to do their part to contribute to the cost of living and to society."
The conference is held in collaboration with Clal Insurance and is sponsored by One Zero bank and Ratio Energies.
Published by Globes, Israel business news - en.globes.co.il - on March 25, 2025.
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