Originally paved in 1861 as part of the highway to Jaffa, the road quickly became a focal point for the 19th century expansion out of Jerusalem's Old City walls, and early neighbourhoods like the Russian Compound, Nahalat Shiva, and Mahane Yehuda blossomed around it, as well as Shaare Zedek hospital. Proximity to the artery quickly became a measure of real-estate value in the booming city. Traffic originally consisted of camels and mules, and the route was eventually improved enough to allow for horse-drawn carriages. The German Templers, who established the German Colony, first began a regular carriage service along the road to Jaffa.