A new Energy Independent Israel is born

The moment everyone has been waiting for has arrived: after more than four years of drilling and pipe laying, the flow of natural gas from the Tamar gas field, located some 90 km (roughly 56 miles) west of Haifa, has begun. The gas is travelling in pipes hundreds of kilometers south into the Yam Tatis gas field and from there will continue to an intake center in Ashdod, where it is expected to arrive in about 30 hours.

This marks a major turning point both for Israel's economy and society and will provide the state with energy independence at least until 2035. Prime Minister Benjamin Netanyahu said, "This is an important day for Israel's economy. On the holiday of freedom we are making an important step towards independence in the field of energy." He further added, "In the past decade we have pushed the gas industry forward and this will benefit Israel's economy as well as Israel's citizens." Upon its arrival to Israel, the gas will support the generation of electricity at power stations - owned both by the Israel Electric Corporation (IEC) and private companies, as well as smaller factories - gradually allowing for prices to drop as Israel's electricity shifts from expensive, polluting and import-dependant materials, such as diesel and fuel oil, to its own natural gas. The transition will also increase Israel's competitive edge in comparison to foreign industries and increase state revenue as royalties for the gas begin to roll in.

Jaffa revival continues

Until just a few years ago, only extreme devotees or young people moved to Jaffa. The people who bought property deep inside the city – other than those who were pushed south for financial reasons – were usually bohemian types enchanted by the sandstone, the muezzin's call and the sound of the waves. Once they arrived, the radical became the conventional, and Jaffa's north, on the border of Tel Aviv, put on a friendly face for families and couples strolling by. New businesses filled the flea-market area and Yefet Street, and the completion of the boardwalk between Herzliya and the renovated Jaffa Port further increased the traffic. At the same time, residential projects got under way, aimed at people who wanted to enjoy the magical surroundings without the hassle of renovating a property. Some of these new homes were sensitively integrated into the neighborhood; others displaced the population and created enclaves in the city. Most designers wanted their projects to become part of Jaffa's exotic mix and incorporated oriental designs.

80% of Israelis to live in Tel Aviv Area by 2025

Israelis are moving to the country's central region in such large numbers that experts predict 80% of Israel's population will be living in the greater Tel Aviv area by 2025. The past decade saw continuous movement from the country's periphery to the center, according to statistics from the Bank of Israel and Central Bureau of Statistics. The result is that the southern and northern districts have suffered negative migration over the years, while the central district has enjoyed positive migration at their expense. "The Israeli nation is congregating on the central plain, in the greater metropolitan Tel Aviv area," says Arnon Soffer, professor emeritus of geography and environmental sciences at the University of Haifa. "There are many figures attesting to Jews leaving the Galilee. All the development towns in the periphery are emptying." "Currently 30% of Israelis live in the periphery, and it is estimated that by 2025 80% of all Israelis will be living in greater Tel Aviv, in the region bounded by Hadera, Modi'in, and Gedera," Soffer continues. "The watershed lines of the periphery are now moving further afield to Kiryat Gat and Zichron Yaakov because of the highways."

Home prices up 1.7% in January

The real estate market is continuing to heat up. Home prices rose by 1.7% in January 2013, the biggest monthly gain since June 2010, according to Central Bureau of Statistics data published on Friday. The Bank of Israel takes account of the Central Bureau of Statistics' Prices of Dwellings Index when deciding monetary policy.

January was the seventh consecutive month in which home prices rose; the cumulative gain was 6.8%. January was also the third consecutive month in which home prices rose by 1% or more: the rise was 1% in November 2012 and 1.1% in December. At the Bank of Israel Monetary Committee in late February, members expressed concern about the rise in real estate prices. The minutes of the meeting, published last week, state, "Home prices have continued to increase at a rapid rate in recent months. Committee members emphasized that monetary policy acts primarily on the demand side, while the required steps are supply-side steps that have the ability to lead to an increase in the inventory of homes while reducing prices, and such steps are not expected before the new government is constituted and the budget is passed."