The full guide to urban renewal in Israel, with how TAMA 38 and Pinui Binui work, is here; this page answers one question: why an older apartment in a renewal track may do better for an investor than a new build. It may, not will, and it depends on the building, the street and the planning path.
Why may an old apartment beat a new build?
It may, because a new flat is priced as a finished product, while an old one in a future renewal building can carry value the seller has not priced in. Three kinds sit inside one old apartment: current rental value, land share value, and future replacement value. A tired flat with no elevator can be more interesting than a renovated one with no redevelopment path.
Is the renewal pipeline active right now?
Yes. In 2025, about 22,000 urban renewal housing units received building permits (down roughly 20% from 2024), including 12,382 Pinui Binui permits, while a record 72,736 units were approved across 179 urban renewal plans (232% of the annual target, up 26% on 2024). Source Approvals are not keys, and many buildings never get through every step.
Past price data points the same way, though it is history, not a forecast. In a September 2020 review of the decade’s biggest neighbourhood price rises, the property portal Madlan picked out several older areas where TAMA 38 and other renewal projects were under way, among them central Netanya, Bat Yam and Kiryat Motzkin. Its deputy CEO, Tal Kopel, said TAMA 38, though criticised for not reaching the periphery, had still drawn investors beyond Gush Dan while renewing old neighbourhoods, and that new transport links were a main driver of demand. Madlan’s review of 2021, published in January 2022, found its list of the largest price-per-square-metre rises included older neighbourhoods where urban renewal was being discussed or promoted, such as Ramat Shaul in Haifa, Ramat Eliyahu in Rishon LeZion and Old Katamon in Jerusalem, and its CEO linked this to attention moving from TAMA 38 to Pinui Binui. These are a private portal’s readings of past years (2020 review, 2021 review), and they do not show that any building you look at today will repeat them.
Which old apartments are the best targets?
Older walk-ups where the planning story is forming but the seller still prices a normal resale:
- Buildings built before 1980, without elevators.
- Streets where nearby buildings already signed with developers.
- Areas near light rail, metro planning, or major transport corridors.
- Buildings where residents discuss Pinui Binui but no final approval has arrived.
Places to watch, not a ranking: Bat Yam, Holon, Petah Tikva, Jerusalem (Kiryat Yovel, Katamonim, Talpiot, Gilo, Kiryat Menachem), South Tel Aviv and fringe Givatayim.
What should you check before you buy?
- Is the building in a municipal renewal plan, and has a developer approached residents?
- How many owners signed, and is the municipality supportive of added density?
- Will the project include a mamad, balcony, elevator, and parking?
- Is there a realistic rental market during the holding period?
Our buyer risk check covers what to verify before you sign.
What are the risks of buying early?
Planning risk. The easy discount often disappears once permits and developer marketing go public, but buying early means a project can stall and leave you holding an old flat for years. It suits investors who can carry that period. Test the numbers with the rental yield calculator, compare new versus second-hand, and see the guide to profitable real estate investments in Israel.
Frequently asked questions
Do older apartments in renewal tracks outperform new builds?
They may, but nobody can promise it. The case fails if the project stalls.
What is urban renewal property investment in Israel?
Buying an old apartment in a building a developer may replace, so you end up with a newer, larger home.
Which buildings are the best targets?
Older walk-ups without a lift, where neighbouring buildings have already signed.
What is the main risk?
Planning risk. A building can collect signatures and never reach a permit.
Where do I start?
Check the building’s renewal status, then tell the Semerenko Group team what you are looking for.
Related pages
- Urban renewal in Israel: TAMA 38 and Pinui Binui
- Read the Semerenko Group Pinui Binui guide
- Compare TAMA 38 and Pinui Binui in Israel
- Investment strategies in Israel
- Browse real estate for sale in Israel
This is general information, not legal or tax advice; confirm with a licensed professional.
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