Urban renewal: 35% of permits, but 22 months to convince

In every country where diaspora Jews live, the idea of an apartment in Israel comes with the same image: a 1960s building that one day becomes a modern tower with a secure room. This is the promise of urban renewal. The 2025 figures show it now carries significant weight in the country's construction sector, but that the road ahead remains long.

35% of permits, 28% of construction starts

According to the Government Authority for Urban Renewal, renewal accounted in 2025 for about half of the housing units approved in the planning system, 35% of building permits, and 28% of construction starts. This is the fourth consecutive year it has exceeded a quarter of the country's construction activity. At the same time, permits fell by about 20% compared to 2024, even as plan approvals reached a record high.

A 2024 Authority report, cited by Ynet, had already indicated that about 30% of construction starts were urban renewal projects and that one in three apartments sold was in such a project.

The end of TAMA 38, the baton passed to 'pinui binui'

TAMA 38, the seismic reinforcement program launched in 2005, has expired ('expired nationwide,' according to Buy It In Israel, November 2, 2026), with cities replacing it with their own renewal plans. The baton is now carried by replacement plans and by 'pinui binui' (evacuation-reconstruction), governed by a 2006 law. By the end of 2025, replacement plans had been approved or advanced in 21 cities, with potential for more than 622,000 new or renovated housing units across approximately 36,650 buildings. Activity extends to Jerusalem, Tel Aviv, Bat Yam, Petah Tikva, and Haifa.

22 months to gather two-thirds of owners

The owner approval threshold was originally 80%; it was lowered to two-thirds in 2021, with at least 60% required in each building. A survey by the Israel Builders Association shows that obtaining two-thirds takes an average of 22 months, and 80% about 44 months. Planning authorities only commit seriously once around 60% of signatures are collected, and a project often takes more than ten years between the first residents' meeting and the handover of keys.

A concrete case: Yosseftal, in Petah Tikva

To grasp the scale, the Yosseftal neighborhood in Petah Tikva targets about 4,686 housing units, including 3,410 new units replacing 998 public housing apartments—a ratio of 3.5 to 4 new units for every old one. Planning began in early 2020 and the public inquiry concluded in August 2024; if the plan is approved, the first permits are expected within three to four years and a visible transformation within five to six years (Ynet, September 2025). A good reminder that 'under renewal' does not mean 'deliverable tomorrow.'

The timeline issue was, in fact, central to October's election campaign: the Bennett-Lapid list promised to bring procedures down to about five years (Buy It In Israel, October 27, 2026).

How many extra square meters do you gain?

A 2020 directive recommends offering owners about 12 additional square meters, plus a balcony, compared to a working assumption of about 25 m² previously. In Tel Aviv, existing apartments up to 80 m² receive up to 12 additional square meters, while larger ones receive none.

What is 12 m² worth? As an illustration, a 92 m² apartment sold for 3.88 million NIS (about 1.25 million USD) in Tel Aviv, according to Tax Authority data cited by the Times of Israel, works out to about 42,200 NIS per square meter: 12 m² would then represent nearly 506,000 NIS (about 163,000 USD). This is a calculation based on a single sale, not a market average.

Why owners hesitate

Gathering two-thirds of signatures in a building means negotiating with neighbors who have very different outlooks: retirees who want to stay, heirs living abroad, tenants, investors. Many diaspora owners happen to hold an apartment in these older buildings, sometimes inherited, and must decide from a distance. This is one of the reasons projects move forward in stages, building by building, and rarely on the schedule initially announced.

The mamad factor

Renewal is also a safety matter: the State Comptroller estimated in January 2026 that about 3.2 million Israelis (33.6%) lacked access to a standard shelter, based on early 2025 data (Ynet). A rebuilt building includes a secure room, which explains the appeal of these projects for an international clientele attentive to this criterion.

What this means for the diaspora buyer

Buying into a building already committed to a project is nothing like buying a newly delivered home. Check the percentage of signatures obtained, the identity and solidity of the developer, the stage of the procedure (approved plan, permit, construction), and what is planned for your specific apartment. On the price front, the new-home index fell by about 0.4% year-on-year, compared to a roughly 1.8% year-on-year decline in average prices (Central Bureau of Statistics, July-August 2026, via the Times of Israel), with the shekel at around 3.11 NIS to 1 USD. Also ask your lawyer to review the project contract, particularly the bank guarantees and penalties for delays. The basics of the purchase process are covered in our ultimate guide to real estate in Israel.

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