Israel Diamond Exchange Area Expansion Plan to be Debated

Finance and Trade
24/08/2016 08:40

The plan, which includes new business and commercial space, homes, hotels and student dorms, will be discussed next Sunday by the Local Planning and Building Committee, according to the Globes daily. The current 750,000 square meter complex will be expanded to 1.75 million square meters with the future diamond exchange business district being 2.5 times larger. Of this area, 1.4 million square meters will zoned for business and up to 120 square meters for commerce; about 1,000 hotel rooms will also be built in the area.

The plan also states that a project including 250 long-term rental apartments, student dorms, business and commercial areas will be built in a plot owned by the municipality and Israel Land Authority. The area will be divided into four types of zones: a very-tall building complex, a tall building complex, a complex with dense construction of low buildings and two 'vacate and build' complexes. Each complex has defined zoning (business, commerce, hotels, student dorms and public needs, or any mixture thereof), a building rights and height key and conditions for their realization. As part of the project, high-rise buildings will be built at the Israel Diamond Exchange inner area, which includes small plots with low buildings, thereby clearing some of the space and enabling more efficient planning of the area. The Ramat Gan municipality "hopes that the real estate upgrade will make the area's sleazy, criminal image a thing of the past," Globes writes.

In terms of revenue, this plan constitutes a financial bonanza for the Ramat Gan Municipality. Real Estate Appraisers Association in Israel Chairman Ohad Danos estimates that the cost of a square meter in the complex will be NIS 12,000-15,000 for purchase and NIS 800 for rent. According to this estimate, realizing all rights in the plan will provide the municipality with no less than NIS 6.5 billion. Ramat Gan deputy mayor and head of the Local Planning and Building Committee Adv. Avivit Maor Nimrodi said, "The municipal concept in Ramat Gan is that instead of expanding into further areas and using land reserves important for the city's future, we should first enhance existing areas and fully utilize the potential in all city areas.

"The same is true for the diamond exchange complex. The municipality has decided on the objective of fully utilizing the economic and business opportunities in the area, in a way that will also increase the municipality's property tax revenue and return money to residents in the form of infrastructure and development works and more. Opening new entertainment venues at the diamond exchange area, which is far from homes, will enable us to provide the resident with a new entertainment area, which the city has never had before."

Student dorms, which play an important part in the plan, will be scattered among the towers, which will be characterized by mixed-use zoning.