A TAMA 38 or Pinui Binui track can raise what an older flat is worth, but not automatically: the gain depends on the project, its scope and the location. Before the project the value rests on expectation; after completion the upgrade shows in the price. The full guide to both programmes is in our urban renewal wiki entry; this page covers only the effect on value.
Status note (as of 2026): Tama 38 is being wound down: national permit applications closed first and the city extensions ended in August 2024 (the dates are on the Tama 38 page). Some municipalities, for example Rishon LeZion, extended it into 2026. Approved projects continue to completion.
Does Tama 38 raise the value of an apartment?
It can, once the building is actually renovated. Under Tama 38 a developer strengthens the building against earthquakes and adds floors, and in exchange sells the new apartments. The whole building is renovated, often with an elevator, a balcony and a security room (mamad) for existing owners. Any uplift varies widely by project, scope and location, and none is guaranteed.
Does Pinui Binui raise the value of an apartment?
It often brings the larger change, because the old complex is demolished and rebuilt. Pinui Binui (“Evacuation and Construction”) remains a main urban-renewal track, and original residents receive a new, usually larger apartment. The process is longer than Tama 38; the upside can be bigger, and so is the delay risk.
There is also a planning difference that reaches beyond your own building. A Pinui Binui plan replans the whole area, so besides new homes it can deal with what the neighbourhood needs, such as public buildings, open spaces, traffic and renewed infrastructure. A Tama 38 project adds flats to one building without that wider planning. The Government Authority for Urban Renewal draws this distinction in its glossary of urban renewal terms. For value, it means a Pinui Binui compound may come with a new public building or open space that a single Tama 38 building does not bring, so read the plan to see what it actually includes and when.
How does value change before, during and after a project?
Before: a flat in an old building slated for renewal
Buyers sometimes pay more for the expected upgrade, but a plan is not a project. Check how far it has got before you count on any gain.
During: construction and the wait
Value is mostly an expectation until keys are handed over, and Pinui Binui in particular is a long process.
After: a completed project
This is where the upgrade shows up in the price: a renovated or brand-new building, an elevator and a safe room. Compare it with similar finished flats nearby.
Is a flat in a building heading for renewal a good purchase?
It can be a strategic, higher-reward, longer-horizon investment, not a safe one. Weigh the track, the stage reached and how long you can wait. Our 2026 view on older apartments and new builds goes through the investment case; if you would rather buy new, explore new-construction projects in Israel.
Frequently asked questions
Is Tama 38 still available in 2026?
Mostly not for new applications: the last extensions ran to August 2024, and a few cities carried projects into 2026.
How is Tama 38 different from Pinui Binui?
Tama 38 strengthens and adds floors to a single building. Pinui Binui demolishes a whole complex and rebuilds it.
Will my apartment definitely go up in value?
No. Renewal can raise value, but it depends on completion, scope and location.
Do I pay tax on the new flat or works I receive?
Not if what you receive stays within the limits the law sets. Owners who sell rights in a Tama 38 or Pinui Binui deal are exempt from mas shevach (מס שבח, land appreciation tax) on consideration inside those limits, and anything beyond them can be taxed unless another exemption applies. Our guide to tax exemptions for owners in Tama 38 and Pinui Binui deals sets out the limits, the forms and the deadlines, so read it before you sign.
Does renewal affect selling my flat?
It can: buyers sometimes pay more for the expected upgrade, so the project’s stage matters. See selling an urban renewal property.
Related pages
- Urban renewal in Israel: the full guide
- Tama 38 in Israel
- Pinui Binui
- Selling an urban renewal property
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This is general information, not legal or tax advice; confirm with a licensed professional.
