Workmen have been toiling around the clock in preparation for Monday’s grand opening ceremony of the new US embassy in Jerusalem. Rooms have been renovated, flowers planted in the design of the US flag and the seal of the US embassy has gone up.

Security around the building has been upgraded, road signs installed and CCTV cameras set up in the area – all part of the renovations that President Trump says have cost a modest $400,000 (£295,000).

After 14 months of rapid preparations, the consulate will be inaugurated to huge fanfare, with about 800 guests and a video address by President Trump beamed live around the world.

Diplomatic moves The embassy building The consulate building in Agron Road was constructed in 1868

It was one of the first houses built outside Jerusalem's old city walls

The original building had only two storeys; a third was added in the early 20th century

The complex currently covers about 6,000 square metres

Plans suggest it will be four times as big once converted, by the end of next year

Renovation work so far has cost £295,000

The US government leases a second site in Jerusalem, in Nablus Road, providing visa services

It will be a largely symbolic affair, however, because up to six more years of work are planned, including a 10ft perimeter wall, an opulent new chamber and several new floors – both upwards and underground – to house the 850 staff moving from Tel Aviv.

Timed to coincide with the 70th anniversary of the founding of the state of Israel, the opening has been hailed as the beginning of a new quarter in Arnona, south Jerusalem, for embassies from countries around the world that will spring up there.

“We might have to build dozens of embassies, and we would need new land ready for that purpose. I asked my ministry to vigorously take action as fast as possible," said construction minister Yoav Galant, The Jerusalem Post reported.

Mr Galant even suggested possible names for the embassies area, the Post said. He initially called it “Embassy Town” but then decided he preferred “Trump Town” after the US president, who has deemed the city Israel’s capital. Ministers have already announced a new railway station near the Western Wall will be named after Mr Trump.

The plan for the new consular facility was created and approved in little over a year thanks to the finance minister, Moshe Kahlon, exercising his authority to fast-track the process. And there will be celebrations aplenty on Monday.

Many of those who know the site best, however, will not be joining in the festivities.

When the rebuilding work begins in earnest, the embassy will be created in part by converting the Diplomat Hotel next door, which it also owns. The embassy will use the consulate building in the short term, but sources suggest the Diplomat is slated to house the embassy in the long run.

For years, the hotel has been leased out as housing for about 450 elderly immigrants from the former Soviet Union.

Now, the building is due to be demolished in two years’ time when the lease expires – and the residents have nowhere to go.

Many of these men and women were doctors, musicians and academics in Russia before moving to Israel in the early 1990s, according to The Times of Israel. Some moved straight into the Diplomat and have never had any other home in the country. Most worked in minimum-wage jobs.

Some of the former Soviet citizens are in their 90s and have had the anxiety of not knowing their fate hanging over them for four years, since they were warned in 2014 the hotel could close.

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When Mr Trump announced in December the embassy would move, it prompted shock and concern among both allies and critics because of the city’s contested status.

The Palestinians want their own state with a capital in East Jerusalem, which Israel captured from Jordanian control in 1967, and many countries have been reluctant to endorse Mr Trump’s idea.

However, in a confident gesture in advance of the embassy move, officials changed its Twitter name from USEmbassyTelAviv to USEmbassyJerusalem.

The complex currently covers 6,000 square metres but blueprints given to planning authorities show it eventually covering about 20,000 square metres or more – four times the size. The US State Department says the new purpose-built building will be ​​a long-term project.

According to Ynet News, the website of Yedioth Ahronoth, an Israeli newspaper, 20 planning companies and two New York firms were hired for the project. The US State Department usually employs selected American firms, but deviated from the norm by hiring an Israeli team, including architect Amir Mann and an Israeli contractor to carry out the work, it said.

A five-storey structure was originally planned but to keep costs down the extra floors have not yet been completed, and the ambassador, David Friedman, will make only limited use of the embassy for now, using it for work but not yet moving in full-time.

Both the Tel Aviv and Jerusalem consulates will provide passports and US visa services during the transition period.

Neighbours have complained that the work, carried out under time pressures, could be environmentally unfriendly and risk going against planning and construction bylaws.

But none is as worried as the 450 Russian residents.

The job of finding a new home for them is down to Israel’s Immigrant Absorption Ministry.

Ksenia Svetlova, a member of the Knesset, of the Zionist Union party, said the ministry has no set plan as to where or how the residents will be moved, and no estimate of potential costs or subsequent budget.

She fears residents could be forced out before June 2020, when the lease expires.

“For four years we knew this was coming. I don’t understand [the] reliance on the idea that ‘It will just be okay’ or ‘Trust us’. That’s not good enough for me,” she told the Times of Israel.

Absorption Ministry spokeswoman Elisheva Cohen told the paper: “The ministry is working together in full cooperation with the relevant bodies in order to find an appropriate solution for the residents of the Diplomat compound and will make sure that no new immigrant will be left without a housing solution following June 20, 2020.”