Julia Ohayon, calcalist.co.il.

The construction of new light rail stations and expropriations for this purpose, blocking central roads and fearsome traffic jams - all make it difficult for the lives of residents of Gush Dan who live near the "excavation areas". This reality and its effects on the quality of residents' lives are often negatively illuminated by the ambitious mass transportation project. However, in many years, those residents are expected to come in for a very pleasant surprise - expressed in the value of their apartments.

This statement is not stated casually and relies on past experience in overseas countries. Studies conducted in various cities around the world have shown that the improvement in housing prices due to proximity to a train station is in the range of 10% -20%. According to the 2014 nationwide real estate company, proximity to train stations could boost house value by about 10%. The study was conducted on the cities of Manchester, Glasgow and London, with the biggest impact being seen in the British capital. In larger metropolitan areas such as Beijing And in Shanghai, the location of the train stations alongside residential neighborhoods raised real estate prices by no less than 30%.

When the proximity to the major traffic routes and the resulting possibility of giving up vehicles and daily traffic jams comes alongside proximity to employment and trade centers, well - this is probably the most successful mix to improve apartment prices. For example, a study in the US showed in major cities such as San Diego, Portland and San Francisco, where living in close proximity to a train station raised house prices by 18%. In contrast, residence alongside train stations combined with commercial areas raised prices even beyond That is to say, while employment centers alone do not necessarily have a sweeping effect on the rise in housing prices near them, their integration with transport accessibility has a decisive effect.

The Jerusalem Experience

In Israel, where transportation infrastructure has only begun to catch up with the gap in Western countries in recent years, there are not many examples of such a successful combination of residential, commercial and transport anchor points. Nevertheless, due to the trends of recent years, we are also beginning to see areas and neighborhoods that are expected to change beyond recognition. Among these is the old Geffen neighborhood on the northwest end of Ramat Gan. The neighborhood, located in the middle between the Bnei Brak Business Center (BBC) and Ayalon Mall to the east, to the bustling stock exchange complex to the west, is also bordered by major traffic routes such as Abba Hillel to the north and Jabotinsky to the south, which is not far from the Halacha interchange.

All of these combined with the proximity to the red line of the light rail, which is currently located on the Jabotinsky axis, are turning the neighborhood's potential for improvement into something not yet seen in Israel.

Connecting the second circle cities of the Dan bloc such as Raanana and Intelligence to the employment centers in the Tel Aviv area, through the opening of new train lines, increased the value of apartments in the vicinity of the train by about 5%. In more remote cities such as Afula, Netanya and the streets, train stations have led to accelerated urban development, raising real estate prices by 5% to 15%.

In Jerusalem, Israel's light rail pioneer, housing prices have risen even more. From an analysis conducted in 2018 by appraiser Nechama Bogin on the basis of the tax authority's figures, the prices of apartments in the capital around the red line of the light rail have increased by 8% -22% from the start of work in 2006 to the opening of the line in 2012.

In light of the improvement in real estate prices in Jerusalem, when work began on the Green Line, even before it became active, a similar trend occurred; in 2018, when its construction began, apartments in the city center saw significant price increases of 15%. French Hill prices rose 5.7% and Pisgat Ze'ev by more than 4%.

By all estimates, even in the cities of Gush Dan, where light rail lines are expected to cross, a huge 10% -25% rise in housing prices will occur, since besides the transport accessibility, there are many employment centers used by the general public from around the country.

Ramat Gan on the directing

Another study that showed the positive "psychological impact" a train has on real estate prices in its vicinity was conducted in 2008 by real estate appraiser Dalia Assis. According to the study, which examined 462 apartment deals near the future train station, the effect was clear and sharp.

For example, in the days before the plan for the establishment of the Bialik station in the city was not approved, prices near the future train station recorded a downward trend, but with its approval and making it more tangible, housing prices in the area rose significantly. "There are market expectations for a change in real estate values ​​following the advent of the train," Assis wrote in her study. "The train has become more tangible with the approval of the program, which is why we are seeing a change in the price pattern."

Indeed, according to modest estimates, in central locations in the city of Ramat Gan the light rail is expected to bring about 10% increase in housing prices. More generous estimates already speak of 20% -25% jumps in key locations close to employment centers.

Vineyard project in Ramat Gan."Only in the last year has there been a 16% increase in housing prices in the neighborhood"

Those who have not been late to identify the trend are the real estate entrepreneur Oleander, whose Geffen Towers project, which she is currently building in the Geffen neighborhood of Ramat Gan, is located close to the main traffic routes in the city - including Ayalon, Gha Road, Namir Road, Z axis Botniski and Abba Hillel In addition, the neighborhood is close to Bnei Brak and Ramat Hachayal's developing business complex, Ayalon Mall and the stock exchange, and the neighborhood also enjoys easy access to the highway connecting Petah Tikva's industrial area.

This is an evacuation-construction project that includes the demolition of nine old buildings and the erection of two towers of 120 and 148 apartments. The first tower was completed and populated about four years ago, and the second is currently in the process of being erected. "In the past year alone, there has been a 16% increase in housing prices in the neighborhood, and it is estimated that prices will continue to rise and move closer to housing prices in Tel Aviv," says Hagit Zahavi, CEO of Oleander and real estate appraiser, who leads the Geffen Towers project.

According to her, the location of the neighborhood had a decisive impact not only on the entrepreneurial company but also on the property owners of the project, who chose to give it their consent: "It has been many years before people realized the potential of this neighborhood. In Israel, there are no more neighborhoods whose value rises Positive, and I believe that when the construction of the train station is completed at the southern entrance to the neighborhood, real estate here will benefit from added value, and significant. "