During the 2015 Israel began construction of 2,434 apartments in the projects of the plan 38 – a jump of 36% in housing starts in the framework of urban regeneration compared to last year. How to upgrade these projects, which increase their share of the Israeli construction industry, increase the value of the apartments? We tested
Tama 38 program continues to gain momentum and increase its share in the Israeli construction industry: According to new data obtained by Ynet, during 2015, Israel began construction of 2,434 housing units in projects of Plan No. 38. That compared with 1,853 the previous year – a jump of 36 % in housing starts. However, construction starts of apartments plan 38 projects account for only 5.3% of total housing starts in the past year (in 2014 the rate of housing starts was 4%).
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The survey conducted Soho Elder Division, which specializes in marketing projects of NMP 38/1 (Strengthening and upgrading) and NMP 38/2 (track demolition and rebuilding), based on data from the Central Bureau of Statistics (CBS). Not tested projects urban renewal. according to statistics, during 2015, the construction of 1,650 housing units in these projects, compared to the 1,588 construction completed housing units in 2014. Therefore, large companies are turning to the field, “he explains. “Urban renewal projects in the coming years will take a larger share of the domestic construction market,” adds Rooney clusters, with clusters company engaged in urban renewal. He said, “As more projects are built, the residents of nearby buildings realize the potential of NOP 38. Previously tenants who refused to understand that stopping a reinforcement of the building in which they live, find themselves in a whole street of buildings higher and newer – and the value of their home will decline rather than exceed “.
Add balcony can raise the value of the apartment by 12% after upgrading the framework of the plan 38, according to the test. The calculation is based on that value sqm terrace is equivalent to 50% of square meters flat major. For example, apartment for its price tag reflects the value of 20 thousand shekels per square meter, and added to her balcony area of 12 square meters, the terrace will raise the price of the apartment is estimated at NIS 120 thousand more. “the addition terrace can shorten the process of selling the apartment, because it is seen as an attractive trait, “adds Bugin. One of the most significant additions NMP 38/1 is the elevator. Adds it to receive high-rise apartment building, who suffered a lower price due to climbing the stairs, the larger value. According to the test, an additional elevator to the apartment on the third floor without an elevator can increase the value by 20%. what about parking? “the value of parking in the central area ranged from 5% to 10% of the apartment value. Parking in town could certainly constitute a real estate property in itself considering the option to rent the daytime rate of up to NIS 1,000 per month, “says Bugin. Even external renovation of the entire building up the value of the asset, at a rate of about 10%. “3-4-storey building with 30-40 years of experience usually need renovation will cost 500-700 thousand shekels, and it’s just for a considerable sum of money of 50 thousand shekels tenant,” says Bugin. “More frugal remodeling can also result in price range of 35-40 thousand shekels tenant. Renovations Rather than cover the whole construction, handyman will only paint jobs and repairs.” “Projects of NOP 38/2 (demolition and rebuilding) can improve the value of assets, but the problem is urban renewal programs quite a few stuck,” says Lior Behar, CEO and owner of Baker group engaged in urban renewal. “Even NMP 38/1 projects, particularly in demand, can improve the property by tens of percent.” David Zehavi, CEO and co-owner URBAN real estate company engaged in NMP 38, agrees. “NMP 38/1 there is less bureaucracy. Tenants staying in apartments and building undergoes a facelift, engineering, architecture and design, “he says.