You see the signs all over older neighborhoods: construction cranes looming over existing apartment buildings. This isn’t new construction; it’s Tama 38 or Pinui Binui, two national urban renewal programs that are radically reshaping Israeli cities and creating huge opportunities for savvy homeowners.
Tama 38 is a project focused on a single building. To encourage earthquake retrofitting, the government allows a developer to add new floors and apartments on top of an existing building. In exchange for the rights to sell these new apartments, the developer renovates the entire building, strengthens its foundation, adds an elevator, and often gives existing homeowners a new balcony and a security room (mamad). The result? Your older apartment is now in a fully renovated building with an elevator, instantly increasing its value by 20-40% or more, at no cost to you.
Pinui Binui (“Evacuation and Construction”) is a much larger-scale project. An entire complex of old buildings is demolished, and the developer builds a brand-new, modern high-rise in its place. The original residents receive a brand-new, larger apartment in the new project. It’s a longer, more complex process, but the financial upside is even greater. For property owners, these programs are like a lottery ticket, offering a massive upgrade in both quality of life and property value. For buyers, purchasing in an old building slated for one of these projects can be a strategic, high-reward investment.
Too Long; Didn’t Read
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Tama 38: A developer renovates an old building and adds new floors in exchange for the rights to sell the new units. Existing owners get a renovated building, an elevator, and a higher property value for free.
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Pinui Binui: A developer demolishes an entire complex of old buildings and replaces it with a new one, giving original owners a new, larger apartment.
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Both programs can dramatically increase the value and quality of an older apartment, making them a key factor to consider when buying.
