The insecure surrounding the house owned by the church in Jerusalem is not resolved and made a serious failure in the real estate market in the city center. It is the opinion of the university of the Hebrew university examining apartment prices in place over 20-year period. It is known to study that apartment prices on Jerusalem’s own lands showing negative discounts up to 30% compared to other apartments in place, due to uncertainty in their future. In the past four years, the need for these assets has fallen by about 20%.
Researchers believe that the situation encourages a friction market, due to many hazards and good income in the apartments for those who buy their agreement reached by an agreement.
Contracts to expire at 2150
This new study was presented at an Alrov Institute Conference for Real Estate Research, Kohler program for the rate-Hagula – Hagar, Hagar, Hagar, the Faculty of Tel Aviv University.
Church-owned lands make up 500 dunams (125 hectares) and include 1,100 apartments in the most expensive neighborhood of Jerusalem – Rehavia, Talbia, and cattle. The land is owned by Greek Orthodox Church for centuries. In 1951, the Church rented the lands of Keren Kayemet Le-Israel (JNF) and private individuals under a long lease. Three years ago, some of the lands were sold for nis 750 million to extell, a company controlled by US entrepreneur Gary Barnett.
1951 leases are scheduled to expire between 2034 and 2150, and the basic problem is that, unlike state rentals (contracts do not provide any security they can continue at the end of the lease period.
The Researchers, Dr. Oren Rigbi from the Hebrew University, Jerusalem School of Business Administration and Dr. Yehonatan Givati from the Hebrew University, Faculty of Law, described a situation, which is not hypothetical, of young families who signed leases with churches, and as the expiration of the leases, and as the expiration of the leases approaches Property. In study, researchers seek to study how to conduct the market of these lands. At this, they evaluated the real estate market marginal data between 2004 and 2024 in the apartments in the lands of the Church, compared to apartments in close proximity to them.
It is clear that the approaching date has ended the lease contract, the less willing potential buyers should take risks and buy apartments there. Between 2004 and 2020, apartments located near the lands of the Church and apartments situated in the lands of the Church are equally made in terms of possibility to buy an apartment. From 2020 to beyond, the possibility of buying an apartment in the lands of the church falls in a general rate of 20%.
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Nis 40,000 per square meter
As early as 2014, pricing gaps appear to form between apartments owned and not owned by the Church. At that time, the average apartment price of the same classes was about 29,000 per square meter. Since then, the prices of the Church apartment slowly in an average less than NIS 40,000 per square meter, while the prices of the Church apartment are closer to 50,000 per square meter.
In other words, a situation arose where, although it is not nominal prices reduced, the actual decrease recorded, compared with the price increase in adjacent properties.
Overall, researchers acknowledge a discount reflects about 30% of property prices for property with 40 years when more than 40 years remain in lease. The total average loss of the value of assets is 10% -15%.
The intervention through state is required
Rigbi says his conference lecture is what now determines whether a solution is held in a solution to a solution that a solution is to buy a solution that a solution can be purchased that a solution is to buy a solution to buy that the solution can be purchased by the solution and his solution will continue to buy. See this situation as a market failure, in which the Government must intervene. This is because there is uncertainty about property rights, economic harm, and inefficient allocation of resources, since buyers of apartments on Church Land do not necessarily know how to value them.
The point is that the buyers in the apartment – who don’t like hazard – avoid buying such apartments, maybe then lose it. Their place was taken by people that Rigbi called “those with a more dangerous hazard.” Rigbi said, “They may not be speculates by means, but they are willing to slow down a day to their apartment will be taken away from them, while an agreement comes to earth, they can do a good result.”
Anomalia solution comes when an agreement can be reached, or even if the public feels (KKLL-JNF, the future owners of the future of these apartments are increasing.
Published in Globes, Israel News in News – en.globes.co.il – On June 12, 2025.
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