Jerusalem's luxury housing market is experiencing a significant shift, with an increasing number of expensive residential towers built, often for wealthy foreign buyers. These developments, some of which feature apartments priced upwards of NIS 8 million, are raising concerns that the city is becoming home to a growing number of 'ghost apartments' properties that remain largely unoccupied for most of the year.
Many of these luxury apartments are sold to Jewish buyers from abroad, often as vacation homes, leaving them vacant during much of the year. This phenomenon is particularly noticeable in the city's prime areas, such as the city centre and the historic district, where high-end towers are being constructed.
In recent years, the number of luxury property transactions in Jerusalem has surged, with over 70 deals for apartments worth more than NIS 10 million in the past three years.
The Jerusalem Municipality has acknowledged the issue but claims to be working on solutions. Efforts include encouraging rental housing development and ensuring a mix of apartment sizes to cater to residents. However, critics argue that these measures are not having a significant impact. While foreign buyers contribute to the city's economy, the empty apartments reduce residents' housing availability and increase property prices
Experts warn that this growing trend may exclude the local population from key urban areas, with entire neighbourhoods transforming into exclusive enclaves for wealthy foreigners. As more luxury projects are built, the question remains whether the municipality can strike a balance between catering to affluent buyers and addressing the housing needs of Jerusalem's residents.
