In recent years there has been a phenomenal amount of change regarding and in some cases, whole blocks of the city have transformed and become orthodox. Even now, the city is witnessing constant change as new residents come and go.
The real estate market in Jerusalem is not influence by the same parameters as pure economics, it is not rational, but moved by forces of emotion and religion.
Of noticeable interest is the fact that real estate within the German Colony, Rehabya and Talbiya, apartments have enjoyed a rise of more than 50% in cost, when compared to a few years ago. Likewise, in luxury neighbourhoods where demand is high, such as in Baq'a and Katamon, properties now often fetch more than a million dollars, something unheard of in the past.
In recent times, property in jerusalem neighbourhoods such as Ramot, Ramat-Eshkol and Kiriyat Yovel have experienced a 70% increase in prices. This is without a doubt, a direct result of the growing Jewish-Orthodox communities who are purchasing large tracts of land on the instructions from their rabbis. Of course it stands to reason that these areas then too become complete orthodox areas as a result.
Under what can only be described as an extremely ambitious plan, several multi-storied residential buildings will soon be under construction in the residential area near the entrance to the city. These, when completed, will total 30,000 individual units in the hope that they will discourage a large percentage of the younger population from leaving the city. Considering Jerusalem's very fragile demographic balance, such measures are seen to be essential in order to maintain its current secular majority.
While many tend to believe that the majority of people leaving the city are secular residents, the statistics show that increasing numbers of religious residents are also fleeing due to increasing property prices. This trend poses a severe threat in terms of poverty when one considers children of this group are often restricted to bible studies only, while forfeiting any formal education.
Market analysts are now predicting that central Jerusalem will become a prime area again within ten years while at the same time, the city as a whole is expected to expand rapidly in a westward direction.
The aim is to bring new residents from cities like Tel Aviv. Many work in Jerusalem and rather stand for hours in traffic rather than moving to Jerusalem. In this sense Jerusalem is not fulfilling the real estate potential it holds for such an historic town.