The German Colony was founded by the Templars, a splinter group of German Protestants who arrived in the Holy Land in the mid-1800s, anticipating the imminent return of Jesus and when Jesus failed to re-emerge, set about establishing a thriving community in the Biblical Emek Refaim (Hebrew for "Valley of Ghosts") that was designed to imitate a typical German neighborhood. The Templars decided to support Hitler in the thirties and were consequently sent back to Germany by the British authorities who had no tolerance for Nazi supporters in the German and Arab communities.
The German Colony's Arab population fled during the 1948 War of Independence and soon after new Jewish immigrants moved in but Americanization and gentrification have been the two forces that have shaped the neighborhood into what it is today. The stunning landscaping and magnificent manors attracted the wealthier elements in the population, turning Emek Refaim into one of the foremost upscale restaurant and shopping districts in the city. The high quality of life especially attracted American and English-speaking Westerners, resulting in the upper-class Israeli and American concentration that exists today in the German Colony.
The German Colony is a lovely neighborhood to stroll through, shop in, catch a bite and even watch a film at the small art-house cinema, Smadar.