While a growing number of foreign residents are buying apartments in Jerusalem, not everyone is pleased with the growing number of luxury apartments being built in the city, which has for all practical purposes prices local Israelis out of the housing market. In addition, many residents feel they are living in ghost towns as foreigners generally only come certain times a year and often, the luxury apartments remain vacant and certain neighborhoods lack services as grocery stores and others cannot survive in those areas.
In the hope of encouraging apartment owners to rent out their apartments, beginning in 2016, the city will be doubling the annual arnona property tax on ghost apartments. The amount that will be charged in NIS 223.56 per square meter, twice the regular rate. The city can easily determine if an apartment is empty by a number of ways including one’s water meter.
City officials prefer that apartment owners rent to young couples that cannot find rentals, but in the absence of a willingness to rent, owners will pay twice the property tax as the increase has been approved by the city.
(YWN – Israel Desk, Jerusalem)
Join the official YWN WhatsApp status
3 Responses
I sense a business opportunity: a service to make your apartment look lived in.
Excellent. Long overdue.
#1- Fraud is not a legitimate ‘business opportunity’.
#2- Long overdue? What a joke! Does anyone really believe that someone who buys and renovates an apartment in Yerushalayim IH”K for millions of dollars (US) is going to rent it out to “young couples”. Even if the owner is willing to rent the apartment, the rent will be so high that the “young couple” will not be able to afford it. And the owner, being able to afford the millions to buy and renovate this apartment will not blink at an extra $10,000 in Arnona. This is a ridiculous plan which will not add too many apartments to the market and is only a means to raise money for the Jerusalem Municipality. It is window dressing which will not help the housing situation and only serves to punish people who invest in Yerushalayim IH”K. Why not provide an incentive (instead of a punishment) to anyone who rents to “young couples” like reducing the Arnona rate.
Barkat needs to get some advice from NYC affordable housing experts – as long as it isn’t Billy DeBlasio.