You see the signs all over older neighborhoods: construction cranes looming over existing apartment buildings. This isn’t always new construction; it’s often Tama 38 or Pinui Binui, two urban renewal frameworks that have radically reshaped Israeli cities and created opportunities for homeowners.
Important status note (as of 2026): Tama 38 was a National Outline Plan focused on a single building, but it is being wound down. The plan stopped accepting new permit applications in most areas from 29 August 2024; only some municipalities (for example Rishon LeZion) extended it into 2026, and it is being replaced by local urban-renewal plans and Pinui Binui tracks. Projects already approved or in the pipeline continue to completion.
Under Tama 38, to encourage earthquake retrofitting, the government allowed 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 for owners in a completed project: an older apartment in a fully renovated building with an elevator. Industry estimates commonly cite a value uplift of roughly 20-40% or more, though the actual figure varies widely by project, scope and location.
Pinui Binui (“Evacuation and Construction”) is a much larger-scale program and remains a primary urban-renewal track. 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 typically even greater. For property owners, these programs can offer a significant 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, higher-reward (and longer-horizon) 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. Note: Tama 38 stopped accepting new applications in most areas from August 2024 (some cities extended into 2026); existing/pipeline projects continue. Owners in completed projects typically gain a renovated building, an elevator and higher value.
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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. This remains a leading urban-renewal track.
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Both programs can materially increase the value and quality of an older apartment, making urban-renewal status a key factor to consider when buying.
If this is part of your real estate plans in Israel, you can explore new-construction projects in Israel.
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