This sounds like socialist dogma. The problem isn't the free market. There are lots of derelict sites in prime locations in Tel Aviv and elsewhere, it is either corruption or incompetence that prevents construction on these sites. There's also pitifully poor transport in Israel - so people cannot live outside of Tel Aviv and commute in. These are the real problems, not capitalism.
Report: Iran's Culture Ministry refuses to allow Barenboim to perform in Tehran (DPA)