Converting the old Foreign Ministry into luxury flats

The Kiryat Hauma development will add approximately 700 residential units to the center of Jerusalem.

By JOHN BENZAQUEN
Kiryat Hauma 88 248 (photo credit: Courtesy)
Kiryat Hauma 88 248
(photo credit: Courtesy)
The western entrance to Jerusalem, which is used by those coming to the capital from the Tel Aviv-Jerusalem highway is undergoing a big face lift. The new hanging bridge, the new urban light railway the new sunk train station opposite Binyanei Hauma are both beautifying the area and enhancing its functionality. But it is not only the aesthetic and transportation aspects which are being improved, the area is also getting a new self contained "neighborhood" which is being built on the ruins of the old foreign ministry - 25,000 square meters of prime Jerusalem real estate ground in what can be described as the geographical center of the capital. In the past the foreign ministry, which in every country in the world is located in prestigious buildings, in Israel it was housed in something akin to a refugee camp of wooden huts. Its only redeeming feature was its wide verdant grounds. Now the whole area will house around 700 apartments in what is called Kiryat Hauma. Kiryat Hauma is just part of a whole which for better name is called the Jerusalem environs. It includes within its boundaries, the Binaynae Hauma the large new government compound including the Supreme Court and Bank of Israel as well as the Monastery of the Cross, the vast expanse of the Saker Park, the Wolfson Towers, and the western tip of Rehavia, which borders with the Wolfson Towers complex. It is an area which when the new Kiriyat Hauma is completed will be inhabited by about to six to seven thousand people since most of the area is covered by public parks, government buildings and convention centers. The residential areas cover something like a third of the total area. The most important development in this area is the Kiryat Hauma development because it will add approximately 700 residential units to the center of the city. The apartments are being built to a very high standard and the prices are accordingly high. They are on average around $6,000 per square meter. The price of the new dwelling has been determined by the price the developers had to pay for the land which works out to approximately 40 percent to 45% of the cost of each apartment. The Israel Land Authority, the owner of the land, has marketed about half the available land and the remaining plots will be marketed as soon as possible. Until now two construction companies have bought land for their building projects. The Yehuda Rahamim Construction Company is building 50 apartments in a three winged seven story building while the B. Yair construction company is building 274 apartments. One of the selling points of these projects is the fact that they are being built on a relative human scale. Ten stories at the most and not the thirty story residential tower blocks which are rising up in Tel Aviv. "One of the big advantages of the new development is its accessibility," said Moshe Babani, marketing manager of Anglo Saxon Real Estate in Jerusalem. "The new urban light railway will make it accessible to most parts of the city while the new train station opposite Binyanei Haauma will make it accessible to most of Israel through the network of the Israel Railways." The new apartment buildings in the old foreign ministry compound are of a very high quality for the simple reason because potential buyers who are asked to part with at least a cool half a million are usually very discerning . "The new Kiriyat Hauma neighborhood is set to become one of the most attractive in Jerusalem. Its unique location offers residents the advantage of living in the geographical center of a large metropolis but in an area of open green spaces," said Ariel Rahamim CFO of Yehuda Rahamim Construction Company. "The whole area is surrounded by the vast greenery of Saker Park, and by the government compound which is quiet and has a lot of open spaces and a lot of green spots. In many ways it is like living in the country. This is especially true of our project which is adjacent to the Saker Park, where residents have "country" views from their windows." The Yehuda Rahamim development is called "Supreme" in honor of the nearby Supreme Court Building and it is been built to a high degree of luxury with rooftop swimming pools in the penthouse suites. The B. Yair development in the Kiryat Hauma is also characterized by high building standards. "We have spared neither cost or effort in designing and building dwellings which are both adapted to the environment are architecturally pleasing to the eye and include all the comforts necessary to 21st century living," said Eyal Hendlar, the companies managing director. The Kiriat Hauma development is indeed a very well designed expertly constructed real estate development and prices are high. The smallest and least expensive apartment costs upwards of $450,000, which is a high price especially in times of an economic slowdown. But both the Yehuda Rahamim and B. Yair sales personnel believe that there is a market for their product. They believe that there is always a market for well located quality apartments. Furthermore Jerusalem is experiencing a trend familiar to Tel Aviv where middle aged couples with children who have flown the family nest, sell their large suburban villas and move to spacious apartments in the city. Kiryat Hauma is the only new residential development in the area but the real estate scene in the Wolfson Towers and western Rehavia is lively and dynamic. The cost of a second hand apartment starts at around $750,000 while a penthouse if available at all is priced in the millions of dollars. Prices in Rehavia are also high. "In Rehavia there are two kinds of real estate. New developments which fetch $7,000 per sqm. on average and old apartments which sell for an average $5,500 per sqm," said Haim Evron, general manager and proprietor of Yarid Dirot real estate brokerage. It seems that these old buildings cost much less to buy but dishing out $5,500 per sqm. is just the beginning. They attract buyers who like the charm of old world apartments with large airy rooms high ceilings etc. However these apartments need restoring and this can be a very expensive undertaking. The price of $5,500 per sqm. might just the beginning of the charm.