The Government Authority for Urban Renewal published today (Monday) its annual report for 2024 – and the bottom line is clear: urban renewal is becoming the mainstream of residential construction in Israel. According to the data, approximately 28% of the housing units approved by planning institutions and about 30% of construction starts in the country over the past year were part of evacuation-reconstruction or Tama 38 projects. This is an unprecedented rate, indicating a significant trend shift – from developments on open land to construction within established urban areas.
According to the report, out of approximately 204,000 housing units approved in 2024, 57,386 (28%) were part of evacuation-reconstruction. A historic turning point was recorded in permits: the number of permits for evacuation-reconstruction (15,447 units) nearly equaled that of Tama 38 (15,753 units) – for the first time since the Authority began its activities.
Projects Come Off the Shelf – and Activity Moves to the Implementation Stage
The year 2024 marked not only planning records but also on-the-ground execution: of about 33,000 apartments sold this year, 31% (10,406 apartments) were part of urban renewal projects. A jump was also recorded in construction starts – 30% of the projects started this year fall within these renewal areas.
Jerusalem leads in the number of approved housing units (about 12,700), with Ramla and Lod also seeing significant additions relative to their population size. In terms of building permits – Jerusalem, Netanya, and Bat Yam are at the top. The Authority also notes a sharp increase in activity in the periphery and the Northern District, mainly thanks to economic balancing grants and initiated programs.
104 New Complexes Declared – All-Time High
The year 2024 also set a record for the number of complexes declared for evacuation-reconstruction: 104 new complexes, of which 81 were initiated by private developers and 23 by public bodies. The Northern District saw a doubling in the number of declared complexes, as part of a government policy to strengthen communities at high seismic risk.
In parallel, the report highlights extensive efforts to replace Tama 38: the Authority advanced comprehensive plans for 18 cities, together offering the potential for the renewal of approximately 530,000 housing units. Plans for Ra'anana, Ramla, and Yavne have already been approved, while others are in advanced stages of submission and approval.
"An All-Time Record – and the Trend Continues"
According to Elazar Bamberger, Director General of the Government Authority for Urban Renewal: “The urban renewal market has reached unprecedented volumes, both in planning and in actual implementation. The transition from planning to full execution on the ground – including construction starts – proves that the field is not dependent only on intention, but is also receiving the tools and certainty it needs. We expect this trend to continue into 2025.”
The Construction and Housing Minister, Rabbi Yitzhak Goldknopf, added: “Urban renewal is not only a response to the housing crisis but a true engine of growth. We will continue to accelerate activity, remove barriers, and support municipalities and developers.”
Attorney Roy Dahan, Partner and Founder of KDC Law Firm: “These are impressive figures that highlight the importance of the urban renewal sector and its prominent place in the agenda of local authorities. It is important to note that there is still work to be done in all planning aspects, especially in streamlining and shortening planning procedures, but the trend is clear, and the fact that more and more permits are being issued for all types of urban renewal projects shows that in the coming years, the urban renewal sector will almost exclusively lead residential construction in Israel.”
Alon Weisberg, Partner and Founder of the Yigal Alon Group: “The current data proves that urban renewal is here to create a new and secure future for thousands of homeowners in Israel. However, it is important to clarify that success in urban renewal requires proper, well-managed work with close guidance from professionals in dealing with apartment owners. When you work correctly and professionally, you understand the urgency and the importance of advancing these projects. There is no doubt that urban renewal is here to lead the residential construction sector in Israel.”