The "Kinneret City" project in Tiberias, one of the largest and most ambitious initiatives seen in northern Israel in recent years, is taking a significant step forward. Av-Gad Ltd. announced this on Sunday that it has recently received the first building permit, allowing construction to begin on Phase A, which will include an open-air theater with 3,500 seats, commercial spaces, and two hotels with a total of 183 rooms.
The entire project spans 24 private hectares at the southern edge of Tiberias, near Shikmim Beach. It is expected to include five hotels (approximately 1,000 rooms in total), three residential buildings with about 500 units overlooking the Kinneret, a commercial boulevard, a conference center, and an open-air theater that will serve as a regional cultural hub. The total investment is estimated at around NIS 4 billion ($1.1 b.).
A Theater by the Water, a Hotel Facing the Stage
In the first approved phase, an open-air theater will be built, expected to host up to 150 performances a year. Surrounding it will be around 60 hotel rooms with direct views of the stage – a concept not yet seen in Israel. The nearby commercial areas will house cafes, restaurants, and shops. The planned conference center is expected to attract companies and organizations to the region, benefiting from infrastructure currently lacking in northern Israel.
Av-Gad Chairman Michael Ratzon stated: "'Kinneret City' is a national-scale project driven by private entrepreneurship, realizing the vision of transforming the Kinneret basin into a vibrant and thriving riviera. This project will be a major catalyst for employment, tourism, and cultural development in Tiberias and the entire Kinneret region."
His son and the company's CEO, Attorney Re'em Ratzon, added: "The first building permit granted today is turning the 'Kinneret City' project from a vision into reality. Av-Gad is proud to take part in the national effort to revitalize the North, significantly invest in infrastructure development, and strengthen the local population.
“We greatly appreciate the support of Tiberias Mayor Yossi Nav'a and Jordan Valley Regional Council Head Idan Greenbaum, who recognized the immense potential of this project. Their continued support, along with that of the planning authorities and the district planning committee, is crucial for its advancement and success,” he said.
“We also deeply appreciate the Tourism Ministry, led by Minister Haim Katz, for their support in promoting the plan at the district committee."
In January 2025, the Northern District Planning and Building Committee approved the deposit of the updated master plan, which includes an addition of 500 residential units with an average size of 70 square meters, as well as an increase of 513 hotel rooms, bringing the total number of guest accommodations in the project to approximately 1,000.
The project is being developed by Av-Gad in collaboration with a group of landowners, including Zohar Oved (former mayor of Tiberias), Roni Peled, Zalman Yelizarov, Meir Cohen, and Gil Vardi. The planning is led by architect Lea Rubanenko. The company estimates that by 2025, the cornerstone will be laid and construction work will begin.