German Colony: The Historic Neighborhood That Became One of Jerusalem’s Most Prestigious

The German Colony is one of the oldest and most sought-after neighborhoods in central-south Jerusalem — founded in 1873 by the German Templers, a Protestant Christian group that established a model agricultural community along Emek Refaim Street, building stone houses in a European style with red tile roofs. During World War II, most of its German residents were deported by the British authorities due to their ties to Nazi Germany, and the neighborhood was later resettled by Jewish immigrants. Today it is regarded as one of the most prestigious addresses in the city, thanks to a rare combination of preserved architecture, a lively commercial and dining strip, and an established international community.

How Many Preservation Buildings Are There in the German Colony?

Dozens of the original buildings along Emek Refaim Street and the surrounding streets are designated as preservation buildings under Jerusalem’s municipal conservation plan, and cannot be demolished or significantly altered without special approval. At the same time, recent years have seen several new, sought-after developments in the neighborhood — including “HaMesila” (HAMESILA), built on the site of the old railway station, along with additional projects on HaMaggid, Yotam, and Hildesheimer streets — providing a rare addition to the housing stock of a historic neighborhood with almost no available land for new construction.

Apartment Prices in the German Colony (Madlan Data, as of 2026)

Based on actual closed transactions reported on Madlan, the average price per square meter in the German Colony as of 2026 stands at roughly NIS 57,000/sqm, with a clear gap between older stock and new construction:

• Older apartments (1940s–1990s) – currently trading around NIS 45,000–60,000/sqm.
• New construction and projects nearing completion – reaching NIS 65,000–84,000/sqm.
• 3-room apartments – average price of approximately NIS 4.2 million (about NIS 58,000/sqm).
• 4-room apartments – average price of approximately NIS 5.6 million (about NIS 57,000/sqm).

Recent example transactions:

• A 4-room, 91 sqm apartment on HaMaggid 16-18 (built in 2023) sold in August 2026 for NIS 6,325,000 (about NIS 69,500/sqm).
• A 3-room, 85 sqm apartment on Yehoshua Ben-Nun 9 sold in May 2026 for NIS 6,000,000 (about NIS 70,600/sqm).
• A 4-room, 137 sqm apartment on the 6th floor of the new Yotam 7 project sold in February 2026 for NIS 11,500,000 (about NIS 84,000/sqm) — illustrating the significant premium for new, high-floor units.
• A large 171 sqm unit in the new Azriel Hildesheimer 15 project sold in March 2026 for NIS 13,076,700 (about NIS 76,500/sqm), representing the neighborhood’s top luxury segment.

In terms of trend: the average price per square meter rose from roughly NIS 47,600 in 2021 to about NIS 61,000 in 2025 – a cumulative increase of approximately 28% over four years, reflecting steady demand and limited supply in the neighborhood.

Community Services, Infrastructure — and the Future Light Rail

Emek Refaim Street serves as the neighborhood’s main commercial, dining, and leisure artery, with a high concentration of cafés, restaurants, galleries, and boutiques. Nearby, the First Station complex and the Liberty Bell Garden are open to the public. The neighborhood benefits from an established Anglo community, along with supportive educational and community institutions.

A significant point for the neighborhood’s future is the historic railway corridor that runs along the edge of the German Colony (already home to the “HaMesila” project). According to Jerusalem Municipality plans to expand the light rail network, an additional line is planned to connect the south of the city with its center, partially utilizing the old railway route – a development expected, once mature, to significantly improve the neighborhood’s transportation access and support continued appreciation of property values in the area, similar to the trend seen in other Jerusalem neighborhoods along the existing light rail line.

Why Consider Buying in the German Colony?

The German Colony combines a rare architectural character found nowhere else in Jerusalem, immediate proximity to the city center, and a stable, established community that consistently attracts foreign residents and new immigrants. Limited housing supply, alongside the handful of new projects already commanding high price premiums, and future transportation improvements via the light rail – all support continued stability and long-term value appreciation, both for investors and for families seeking quality of life and a central location.

Frequently Asked Questions About the German Colony

When was the neighborhood founded?

The German Colony was founded in 1873 by the German Templers, and is considered one of the oldest neighborhoods in modern Jerusalem.

What is the average apartment price in the German Colony as of 2026?

According to Madlan data, a 3-room apartment trades on average around NIS 4.2 million and a 4-room apartment around NIS 5.6 million, with an average price per square meter in the neighborhood of about NIS 57,000, carrying a significant premium for new construction.

Is a light rail line planned for the neighborhood?

Yes – according to Jerusalem Municipality plans, an additional light rail line is planned that will partially use the historic railway corridor running along the edge of the neighborhood, a development expected to improve transportation access in the future.

Considering buying or selling in the German Colony? The Amirim Real Estate Solutions team will guide you through every step.