JERUSALEM (Jul. 31)
Construction of rental units is desirable and possibly even essential but it cannot solve the housing problems of immigrants to Israel, Giora Josephthal, Israel’s Labor Minister told the Israel Parliament.
Replying to questions concerning provision of housing for newcomers, he said that in private housing, a rental return amounting to 12 percent of the builder’s investment was considered satisfactory.
He pointed out that on this basis, a builder who invested 8,000 pounds per apartment, which would build only a small two-room unit of about 150 square feet in austerity construction, would expect a rental return of 80 pounds a month which was too high for new immigrants.