Urban Renewal Projects in Israel

Urban Renewal Projects in Israel – How They Affect Property Values

Israel’s urban renewal programs have transformed the real estate landscape over the past decade. With limited available land, growing population density, and aging buildings, the government’s initiatives such as TAMA 38 and Pinui-Binui aim to modernize cities, improve safety standards, and increase housing supply.

For investors and homeowners, these projects often mean significant property value appreciation and improved living conditions.

Ken Hator, with over 30 years of experience in development, plays a leading role in urban renewal across Tel Aviv, Jaffa, Petah Tikva, Jerusalem, and other high-demand cities, delivering projects that blend modern design with strategic location.

Types of Urban Renewal in Israel

1. TAMA 38 (National Outline Plan 38)

• Focuses on reinforcing buildings against earthquakes and adding modern infrastructure.
• Usually applied to older residential blocks built before 1980.
• Homeowners benefit from renovated apartments, new balconies, elevators, and sometimes additional rooms.
• Developers gain rights to build additional floors and sell new units.

2. Pinui-Binui (Evacuation and Reconstruction)

• Entire old buildings or complexes are demolished and replaced with modern residential towers.
• Allows for complete redesign of the area, including parking, green spaces, and community facilities.
• Residents are temporarily relocated during construction and return to brand-new apartments.

How Urban Renewal Affects Property Values

• Once a renewal project is approved, property prices in the building often rise due to the expected upgrade.

• Buyers are willing to pay more for a modern apartment in a prime location with upgraded infrastructure.

• Renewal projects often improve entire streets or districts, attracting new businesses and residents.

• Renovated apartments command higher rent, attracting tenants seeking quality housing in central areas.

Why Urban Renewal is a Strong Investment Opportunity

• Lower Entry Price: Older apartments in renewal-eligible buildings are typically cheaper before the project starts.
• High Appreciation Potential: Value can increase significantly upon completion.
• Government Support: Urban renewal aligns with national housing strategies, ensuring policy stability.

Ken Hator’s Expertise in Urban Renewal

• Strategic Locations: Projects in Tel Aviv–Yafo, Jerusalem, Petah Tikva, and other high-demand cities.
• Quality Construction: Modern design, advanced building standards, and attention to detail.
• Proven Track Record: Decades of successful completions in residential development.
• Direct Developer Sales: Buyers get competitive pricing and professional guidance.