North Israel Urban Renewal Stalled, No Building Permits Issued in Four Border Cities

State Comptroller Matanyahu Englman says that over the past decade, zero building permits were issued for 23 evacuation-redevelopment projects in Beit She'an, Tiberias, Safed and Kiryat Shmona, despite their exposure to earthquakes and rocket fire from Lebanon. The annual report on local government, published Tuesday, says the bodies responsible for urban renewal are moving slowly and without a coherent system, even after the June 2025 Operation "With All Your Might" and renewed concern over building reinforcement after Iranian missile strikes.

The report compares Israel with Britain, Japan and the Netherlands, noting that the first two have written national urban-renewal policies, while the Netherlands opted for decentralization and lighter regulation. In Israel, by contrast, policies, institutions and laws exist, but Englman said, "Despite my previous recommendations, no national policy document or unified national plan for urban renewal has yet been prepared."

The audit examined five municipalities, Lod, Netanya, Kiryat Yam, Kiryat Shmona and Ra'anana, from June to October 2025, and reviewed 2021 to 2024 evacuation-redevelopment plans. It found that approvals accelerated in those years, with 157,000 apartments approved out of 259,000 planned between 2010 and 2024, about 60%. In 2024 alone, approvals rose 40% from 2023 and 44% from 2022.

Still, most activity remains concentrated in the center. According to the report, 58% of projects, 472 of 814, are in the Tel Aviv and Central districts, which together account for about 56% of all planned apartments nationwide. By comparison, the North and South together have only 98 projects, while Jerusalem has 137 projects and Haifa 97. Englman urged the Prime Minister's Office, Israel Land Authority, Planning Administration and the Urban Renewal Authority to create conditions for projects in less profitable areas.

The report also says local renewal administrations have expanded from 8 to 46 in 48 authorities since 2017, but 23 authorities still advanced projects without one. It found major gaps between planned apartments and building permits in Lod, Netanya, Kiryat Yam and Kiryat Shmona, and said public data on urban renewal is sometimes outdated or incorrect. The audit also highlighted budget underuse, long delays in specific projects, and said the process can drag on for years, including one Ra'anana project that took 23 years from planning to occupancy.