For years, Kiryat Menachem was seen as an old Jerusalem neighborhood pushed to the sidelines. Its distance from the city center and its outdated infrastructure often made it a symbol of what was left behind – a part of Jerusalem that never reached the city’s main stage.
But as in every successful investment story, what until recently was considered a “disadvantage” is now becoming a real estate advantage: the open spaces, the proximity to the Jerusalem forested hills, and the new accessibility provided by the light rail – all create fertile ground for investment.
The numbers coming from the Jerusalem Municipality tell the story: a projected 4.6-fold increase in housing units; currently, there are 15 urban renewal (evacuation and reconstruction) projects in the neighborhood, in which about 980 old apartments will be demolished to make way for approximately 4,700 new apartments. The planning also includes over 60 kindergarten and daycare classrooms, more than 3,000 square meters of community and cultural centers, the construction of five new synagogues, and a significant expansion of public buildings.
As of today, about 20 real estate companies are active in the neighborhood at various planning and execution stages. All of this paints the picture of an unprecedented urban revolution, one that will change not only the look of the streets and buildings but also the quality of life and community fabric of the neighborhood.
Neta Nissim, Head of the Urban Renewal Directorate at the Jerusalem Development Authority, describes the vision: “Within a few years, Kiryat Menachem is expected to become a model of high-quality urban living, characterized by advanced transportation infrastructure, excellent services, proximity to green spaces and urban nature, while preserving the local spirit and sense of community belonging. Our goal is to establish a citywide work plan that defines the public needs of every renewing neighborhood – such as schools, cultural centers, parks, and infrastructure – and to ensure that they are planned and built in sync with the pace of construction and occupancy of the new buildings.”
“We are not satisfied with merely constructing public buildings or adding new apartments; rather, we see the neighborhood as a living, breathing unit with its own community fabric. Kiryat Menachem and Ir Ganim are currently at the center of the city’s efforts, and the aspiration is to provide their future residents with all daily services within walking distance – in a convenient, accessible, and modern standard. Our vision is to turn urban renewal into an opportunity for better living, not just a purely real estate aspect,” Nissim emphasizes.
The Investors Are Already Here
The potential has not escaped the eyes of investors. Yardena Shenk, CEO of Jordana Group, explains: “Jerusalem has always been a preferred destination for Jews from Israel and abroad. But the central neighborhoods – Rehavia, Talbiya, the German Colony, Baka, and Old Katamon – are no longer financially accessible. Therefore, the population is looking for new areas, and Kiryat Menachem today offers a real opportunity: attractive prices, expanding community services, and improved accessibility with the light rail.”
Real estate appraiser Ron Mazor – certified real estate appraiser (MBA in Business Administration), former Chief Appraiser of Bank Leumi, and owner of ‘Ron Mazor – Real Estate Appraisal and Management’ – sees the current trend as a deep transformation: “Kiryat Menachem, which for years suffered from negative stigmas and was perceived as a socially complex neighborhood, has in fact been undergoing a gradual change for about fifteen years. We are seeing the entry of young, high-quality communities, a leap in construction quality with new projects, and most importantly – a shift in the neighborhood’s image. What was once considered a Jerusalem ‘periphery’ is gradually becoming an area with clear advantages for families seeking both nature and community.”
Mazor continues: “The uniqueness of Kiryat Menachem is the combination of the open view of the Jerusalem Hills, which provides a rare quality of life in such a crowded city, with urban renewal that brings with it new educational institutions, community centers, and advanced public facilities. The approved plans, including high-rise towers of up to 37 stories with commercial and service areas, are a real estate growth engine that is expected to raise rental prices and maintain the upward trend in property values in the neighborhood. Those who look ahead understand that an investment here today could be one of the most profitable in Jerusalem over the coming decade.”
In conclusion, Kiryat Menachem is at its turning point: an old neighborhood renewing at an accelerated pace, with evacuation-reconstruction projects, new educational and community institutions, and a light rail that connects it to all city hubs. Will it realize its potential? Either way, it is considered one of the most interesting real estate opportunities today – in Jerusalem in particular and in Israel in general.