Ramat Gan Mayor Warns of Urban Renewal Project Collapse Amid Falling Prices
Translated & summarized from Globes by baba
Ramat Gan Mayor Carmel Shama-Hacohen warned that a 5-10% drop in apartment prices could cause 90% of urban renewal projects to fail. He criticized inflexible planning based on rising markets and called for national adjustments to allow for more housing units. The mayor also addressed future challenges, including transportation issues in Gush Dan and the need to plan for technological advancements like AI and autonomous vehicles.
The story in 6 lines · by baba
- Ramat Gan Mayor Carmel Shama-Hacohen warned 90% of urban renewal projects could fail due to falling apartment prices.
- A 5-10% decrease in housing prices could lead to the collapse of most urban renewal initiatives.
- The mayor criticized planning assumptions based on a perpetually rising real estate market.
- He advocated for a national plan to add housing units to approved projects based on market changes.
- Shama-Hacohen also highlighted severe transportation problems in the Gush Dan area.
- Future urban planning must account for technological shifts like AI and autonomous vehicles.
Ramat Gan Mayor Carmel Shama-Hacohen issued a stark warning at the "Real Estate Truth" conference in Eilat, organized by the Tel Aviv and Central District Contractors and Builders Association. He stated that a further decline in apartment prices could jeopardize the majority of urban renewal projects in the city. Shama-Hacohen estimates that a 5-10% drop in prices would lead to 90% of these projects failing.
He criticized the planning assumptions based on continuously rising market prices, highlighting the inflexibility in adapting plans to market shifts. "They were based on the assumption that the market always goes up. What happens when the market goes down? In a world of mental inflexibility, it doesn't work," he said. To address this, he called for a national urban building plan that would allow for adding housing units to already approved projects, adjusted for changing market conditions.
Looking ahead, Shama-Hacohen discussed the development of new neighborhoods in eastern Ramat Gan, noting the municipality's preparations for residents' needs, including advanced amenities. However, he pointed to significant transportation challenges in the Gush Dan region, describing the situation as "crazy" with no immediate solutions, and estimating that the completion of the metro and light rail systems would take many more years.
Furthermore, the mayor emphasized the need to incorporate anticipated technological changes into urban planning over the next decade. He believes artificial intelligence and robotics will transform daily life, potentially through autonomous vehicles, reducing the need for personal car ownership. Ramat Gan is consulting an external team to integrate future uses of robots, drones, and other technologies into current planning, acknowledging the rapid pace of change and the necessity of early preparation despite an unclear future.