Economy10:40 · Jun 16

Developers Reopen Plans to Add Larger, Safer Mamads as Values Rise

Globes
Translated & summarized from Globes by baba
The story · English

Nearly a year after Amendment 163 to Israel’s Planning and Building Law took effect, developers are increasingly redesigning residential projects to enlarge protected rooms, or mamads, from 12 square meters to as much as 18 square meters, depending on apartment size. The change, introduced in the wake of the Hamas war and Operation “With the Lion,” allows half the added area to be used for a toilet or bathroom and the rest to expand the protected room itself. The amendment also changed betterment-tax rules, granting full exemption for the extra area in apartments larger than 80 square meters, while smaller apartments are exempt only for the sanitary addition. Even projects already approved but not yet built can adopt the new standards.

Globus examined how the rule is being implemented as the real-estate sector prepares for another possible confrontation with Iran. Noy Graif, CEO of Amram Avraham, said the company froze existing plans, reopened them, and even delayed quarterly targets to adapt projects. He called the change positive both commercially and financially, saying the extra construction cost is offset by higher apartment values and buyers get larger homes with upgraded sanitary facilities. Michal Gur, CEO of Peretz Boni HaNegev Group, said demand for mamads with toilets, known as mamashes, is rising, especially among families with children. She said the topic often comes up at the start of group-purchase deals and that in three projects already at final design stage, her company went back three or four months in the process, including one project already in excavation and shoring, to enlarge the mamads.

Israel David, acting chairman of the Engineers Association for Construction and Infrastructure, said the assumption that people stay in a mamad only briefly has proven wrong, so comfort and living conditions have become important alongside protection. He said many developers have been reopening approved plans in recent months because there is less pressure to sell quickly, allowing them to stop progress, update plans, and replace standard mamads with enlarged ones, even though this requires fresh approvals and coordination with Home Front Command. Gur said the expansion adds an average of 3 to 4 square meters per apartment, or 700 to 800 square meters in a 200-unit project. With construction costs of about 6,000 to 7,000 shekels per square meter and much higher sales prices, she said delaying a project can be worthwhile, especially in a tough sales market where a differentiated product matters.

Shviro Group recently launched a campaign for its “SuiteMamad,” a mamad with private toilet and shower, featuring teenager Nir Kriegel, known for “Ma Ze Shema BaShamayim.” Shviro marketing vice president Gil Ashkenazi said the land rights are granted without extra payment, so the only added cost is construction. Using Tel Aviv as an example, he said a project priced around 60,000 shekels per square meter would cost about 8,000 shekels per square meter to build the extra mamad area, while buyers pay far more for the added space. Still, he said the larger units can be harder to market in a price-sensitive market, and the extra square meters do not always recoup their full value, so pricing sometimes must be adjusted carefully.

Appraiser Shmuelik Cohen, CEO and owner of SK Shamaiut, said the economics are currently favorable for opening plans and expanding mamads. He said in Tel Aviv each added square meter can raise value by 50,000 to 60,000 shekels, while in second-ring cities such as Bat Yam, Rehovot and Rishon Lezion it can add at least 30,000 shekels. He estimated that adding three to six square meters can lift apartment value by 90,000 to 180,000 shekels. Appraiser and lawyer Erez Cohen said completed applications could see a 3% to 7% price increase versus similar apartments with standard mamads, with larger gains possible in smaller and medium units and in high-demand areas. But architect Adi Rubanenko warned that in advanced projects the change can be complex, affecting plumbing, shafts, adjacent rooms and the apartment’s overall layout, so some developers may still choose not to proceed if it delays permits or construction.

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