The Arab residents of Katamon fled in 1948, in the wake of fierce battles for control of the area during the Arab–Israeli War. The abandoned homes in the German Colony and other parts of Katamon were used to house new immigrants. Since the end of the 20th century, the neighborhood has undergone a process of gentrification. Efforts are being made to restore old landmark buildings and incorporate some of their architectural features, such as arched windows and tiled roofs, in new construction. Numerous cafes, bars, restaurants, and boutiques have opened in the neighborhood, and many affluent families have moved there, pushing up the price of real estate. The German Colony has a large English-speaking population, with the English speaking community comprising both families and singles, permanent immigrants and visitors. The neighborhood is home to the Smadar Theater, Jerusalem's arthouse cinema and a perennial gathering place for the artisterati.