181 residential units approved in capital's southwestern Gilo neighborhood.
US Secretary of State John Kerry met in Paris on Saturday with his French counterpart, Jean-Marc Ayrault, Palestinian issue was among the topics discussed.
The neighborhood’s housing shortage is increasing as many families seek to move to Gilo, for reasons such as good educational institutions, relatively low housing prices and public transportation.
Costs for the project, to be carried out by a private contractor, will be defrayed by the resulting insurance claims from the January 2014 blast.
"The Palestinians adjacent to Jerusalem have a double life, not to say a split personality."
Since 2006, the IDF has wanted to build a 1.5 km. stretch of the security barrier between Har Gilo and the Palestinian city of Beit Jala to prevent terrorists from entering Jerusalem.
The building of 708 Jewish homes commenced this week in a forested area of the southern Jerusalem neighborhood.
Jerusalem is a city full of diverse areas, many of which often have been regarded by buyers as less desirable.
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