Real estate experts are expecting a rise in Jerusalem housing prices following the opening of the United States Embassy.
Nir Shmul, head of a major real estate firm, pointed out that, with America’s blessing, more embassies will return to Jerusalem, increasing demand in the city. He also suggested that international institutions may feel more comfortable in Jerusalem, thus bringing with them a need for land and residences. Shmul guessed at a ten percent rise in the price of housing and a 20% rise in the price of land and buildings that could serve as an embassy location.
In addition to embassies that could be built, existing consulates could be turned into embassies bringing with them the need for apartments for diplomats. Reports already suggest that there has been a rise in demand for big apartments in the German and Greek Colony neighborhoods.
This comes as national housing prices are experiencing their first long-term reductions in a decade. In the last six months, there has been a drop of 2.7% in housing prices.