Urban renewal · Israel
Urban renewal in Israel: Pinui-Binui, TAMA 38 and developer joint ventures
Urban renewal is one of the main ways new housing is built in Israel’s cities. Renew Realty works with apartment owners, landowners, developers and investors on redevelopment projects, from choosing a developer to signed agreements.
- Pinui-Binui
- TAMA 38 and successor plans
- Land-for-units joint ventures
- Developer partnerships
What urban renewal means in Israel
Israel’s large cities have little open land left and a large stock of apartment buildings built between the 1950s and the 1980s. Urban renewal, known in Hebrew as hitchadshut ironit, replaces or upgrades these buildings and adds new homes on the same land.
The basic trade is the same in every model: the existing owners receive new or improved apartments at no cash cost, and the developer finances the project by building and selling additional units. How much each side receives depends on the building rights available, construction costs and the local market.
Pinui-Binui
“Evacuate and rebuild”. One or more old buildings are demolished and replaced by a new, larger project. Residents move out during construction, usually with rent covered by the developer, and return to new, larger apartments. These projects need the consent of a legally defined majority of owners.
TAMA 38 and successor plans
A national plan that allowed buildings to be reinforced against earthquakes, or rebuilt, in exchange for extra floors and units. It has been replaced by municipal plans, often called the Shaked alternative, that continue to trade building rights for renewal.
Land-for-units joint ventures
Known in Israel as kombinatzia. A landowner contributes land or building rights and receives completed apartments or a share of the proceeds instead of cash. Common in both renewal and new development.
Who we work with
Apartment owners
Understanding proposals, comparing developers and negotiating terms, so owners can make an informed decision together.
Landowners
Assessing the value of land and building rights and structuring land-for-units agreements with developers.
Developers
Sourcing renewal projects, land and partners, and supporting negotiations with owners and landowners.
Investors
Israeli and international investors looking for exposure to redevelopment, whether alongside developers or through new units in renewal projects.
How a project usually progresses
Every project is different, but most follow the same broad path.
Feasibility
Planning status, building rights and the economics of the site.
Developer selection
Owners organise, compare proposals and choose a developer.
Agreements
Signed agreements and the required majority of owner consents.
Approvals and build
Planning approval, building permits, construction and delivery of the new homes.
Key terms
- Hitchadshut ironit
- Hebrew for urban renewal: the umbrella term for replacing or upgrading existing residential buildings.
- Pinui-Binui
- “Evacuate and rebuild”: demolition of existing buildings and construction of a new, larger project on the same land.
- TAMA 38
- A former national outline plan for strengthening buildings against earthquakes in exchange for additional building rights.
- Shaked alternative
- The common name for municipal urban renewal plans that replaced TAMA 38 in many cities.
- Kombinatzia
- A land-for-units deal in which a landowner receives completed apartments or a share of proceeds instead of cash.
- Building rights
- The floor area and number of units a statutory plan allows on a plot. They drive the economics of every renewal project.
- Betterment levy
- Hetel hashbacha: a municipal levy on the increase in land value created by a planning change. Renewal projects often receive exemptions or reductions.
Hebrew readers can also see our guide to urban renewal for residents. More articles are in our urban renewal insights.
Frequently asked questions
Also see real estate investment in Israel.
What is Pinui-Binui?
Pinui-Binui, Hebrew for “evacuate and rebuild”, is the Israeli model in which old residential buildings are demolished and replaced with a new, larger project on the same land. The existing owners receive new apartments, usually larger than their old ones, and the developer funds the project by selling the additional units.
What happened to TAMA 38?
TAMA 38 was a national plan that let owners strengthen buildings against earthquakes, or demolish and rebuild them, in exchange for additional building rights. It has been phased out in recent years and replaced by municipal urban renewal plans, often referred to as the Shaked alternative, which keep the principle of trading building rights for renewal.
What is a land-for-units (kombinatzia) deal?
A landowner transfers land or building rights to a developer and, instead of cash, receives a share of the completed apartments or of the sale proceeds. The structure is common in both urban renewal and new residential development in Israel.
Can foreign investors take part in urban renewal projects in Israel?
Yes. Foreign buyers can purchase apartments in Israel, including new units in renewal projects, and can invest alongside Israeli developers. Structures, taxes and financing differ from project to project, so independent Israeli legal and tax advice is essential.
How long does an urban renewal project take?
Timelines vary widely. Smaller strengthening or rebuild projects can take a few years from signed agreements to completion, while large Pinui-Binui projects often take many years because of planning approvals, owner consents and construction.
Get in touch
Discuss an urban renewal project
Tell us about the building, the land or the investment you have in mind, and we will get back to you.
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