The increases in the last year and a half in apartment prices are insane. They are losing control. A 25% increase in apartment prices is not something that can be put on the agenda. It’s a systemic failure, a failure of our leaders, it’s damage to generations, literally. Which generation can and will be able to buy an apartment here in the future. So those who have an apartment (which is the majority of the population) may be comforted by the fact that they have become richer by another 300-400 thousand shekels (expansion here), but that’s what politicians are for – to transfer the benefit-profits-resources between the citizens in a correct and equitable manner. also Dafna Har Lev, CEO of Aviv Yazom, I believe that the politicians are not really trying to address the housing problem.
Aviv Yazom, which is owned by the Aviv Group and
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-2.38%
Base:26,020
opening:25,610
High:25,710
low:25,040
change:15,927,583
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. reported on the purchase of land in Tel Aviv in the amount of NIS 170 million. Harlevexplains about the project that the plan in place is Compliant with Tel Aviv 5,000 – “We are in an era where there is a real need for a supply of apartments and there is no reason not to approve such a plan, even if certain neighbors will be more crowded, in the end the city has to crowd in and provide the amount of apartments that the population craves. We rely on the plan being approved and it is Right now I have to leave for the deposit.”
What is the currently expected profit from the project, how much will the apartments sell for and when is the project expected to be finished?
“Prices in the area are now around NIS 50,000 per meter, this is a really good neighborhood. Being conservative, we estimated a long enough period until we get on the ground – the estimate according to the business plan is four years and it may take less time than that.”
What other significant projects is the company currently working on?
“We are in the process of building two very high-quality projects, one of which is the Ministry of Foreign Affairs district in Jerusalem – 254 housing units, of which we have already started the first phase of the project and we only have the second phase left. We have the project at Achimair 1 in Tel Aviv, which is an iconic building , all the apartments have been sold, all the trade has been sold – an amazing project and we are now in the final stages of its completion. We have other urban renewal projects in progress – on Hankin Street in Tel Aviv everything is already sold, a project on Hatzak Street in Ramat Hasharon and other projects in Ramat Gan have been completely sold. Everything is sold. One of the biggest problems today is that there is not enough merchandise And we are in the process of obtaining many permits, mainly in the central region. We intend to do both urban renewal and land acquisition.”
Can we understand that you don’t currently see a slowdown in demand?
“First of all, we sold everything there is, even if we wanted to we have nothing to sell and neither do my colleagues. Why isn’t there actually enough inventory to sell? When all the processes are so long and protracted, it really takes years when you initiate a project until you get off the ground and it’s crazy. Who The most affected by this situation is of course the citizens of the country, The supply is still not able to meet the demands and therefore the prices are rising. There are of course other reasons why prices are rising, for example because of the increase in input prices and the need for standards. All the band-aids they tried to put on, when we as contractors said they were irrelevant and would not solve the crisis, indeed do not solve the problem, neither a target price nor a price for the resident.”
What is actually more oppressive about the problem – the excess bureaucracy or the lack of release of the lands?
“One of the problems why land is not released is that the authorities also have problems and difficulties in planning. A tender for skyscrapers in Herzliya, for example, does not go ahead because the municipality of Herzliya claims that if it does not receive funds for infrastructure, it will not allow to build more. Eventually we will reach a situation like this – a contractor wants to build on land but there will be no permits for it, the mayor of Herzliya says explicitly – he will not issue permits until he receives more funds for infrastructures that will support the construction. Urban renewal projects for example take 8 years, why would it take so long?“.
Could it be that there is an interest that the prices will not stop rising?
“I can’t tell you that, but I can say one thing – probably if they wanted there to be a lot of goods, they should have invested in opening all the barriers and perhaps taken part of the governance of the local committees. Instead of fixing, they come and put band-aids and blame the entrepreneurs and come with miracle cures Which in my opinion will actually make the market more expensive. When Eric Sharon wanted accelerated construction, there was accelerated construction. The developers and contractors knew how to respond to this and it really gave a solution.
“Today’s regulation simply burdens us – today, after issuing a building permit, Amendment 101 also requires us to have a work permit before moving onto the land. What happens is that after we issue a building permit that an appraiser let us issue, we have to wait between three months and six months, and there are entrepreneurs who talk about numbers higher, to get permission to go up to the ground.
“Now that the interest rate has gone up, it is clear that the increase in prices will be passed on to the buyers because in the end the entrepreneurs cannot lose money, if they lose money there will be no entrepreneurs and there will be no one to build the apartments. Who does this whole situation benefit? I don’t know, but I do know that the entrepreneurs are losing money And the contractors, every time there’s the minister on duty who thinks it’s very populist to say bad things about those entrepreneurs and contractors, but that doesn’t solve the problem.”
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