American Embassy Move: Impact on Jerusalem Real Estate

Arnona and Talpiot are already seeing a rise in prestige – and are being packaged as Jerusalem’s new diplomatic suburb

 Jerusalem real estate and the American embassy move’s impact on the Arnona and Talpiyot neighborhoods.

If owning a piece of real estate in Israel’s capital wasn’t yet inaccessible, real-estate brokers say that the planned move of the US Embassy to Jerusalem could make that dream ever more expensive.

Though American officials state that the move is expected to take at least two years, with US ambassador to Israel Daniel Shapiro estimating even 5 to 10 years (enabling a successor to President Donald Trump to roll back his decision), some realtors are getting a jump on the area’s new cachet – and are positioning the Talpiot neighborhood and surroundings, around the American consulate, as Jerusalem’s new diplomatic suburb.

Impact of Embassy Move on Arnona and Talpiyot

This might be a further push for foreign home buyers with means, already eager to purchase their own personal stake in the holiest city in the Holy Land and now comforted by the strengthened security the embassy brings with it.

All of this could cause a spike in prices in Talpiot and Arnona – just as a wave of new high-rise construction in the area has increased supply.

While the US Consulate General’s main branch is situated on Agron Street near Mamilla Mall, the US Consular Section compound is already located on Arnona’s David Flusser Street, next to Talpiot; the US also owns an adjacent building in Arnona. The American holdings also include the rental of a number of acres of an empty plot in Talpiot near Baka. Whichever of the capital’s neighborhoods is chosen as the embassy’s home could likely expect an increase in property values, with the significant market that is embassy staff eager to live near their new workplace.

While this is good news for current homeowners, renters will face rising prices.
But these same homeowners might be in for somewhat of a long haul, dealing with the logistics of security, transportation, traffic flow and impeded views. The demographic and religious makeup of the neighborhood will likely see a change as well, with embassy staff moving in.

As such, not everyone is thrilled – and in early April, a group of residents whose homes overlook the American consulate submitted a petition to the High Court of Justice against the US Embassy plans, saying Finance Minister Moshe Kahlon’s move to exempt the project from standard planning rules is illegal.

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Michael Steinmetz

Jerusalem Real Estate