If you were to ask a Palestinian they would claim it was their land. However, the area is in West Jerusalem. There is no ban on building altogether in Israel or Jerusalem and although the building freeze forced on disputed territory expired without achieving its intention of bringing the Palestinians back to negotiation, there has been barely any construction there since. The UN decided on Jerusalem over 63 years ago. The Arabs rejected the proposal, started a war and the UN never carried through their plan once Jordan took control, violating their own resolution, for a change.
Suspected assailant in car-ramming attack in West Bank shot (Haaretz)