Israel Plans to Convert Office Spaces to Housing, Adding 27,000 New Apartments

Israel's special committee for converting office spaces to residential units is advancing plans for at least 27,000 new apartments. Approximately 7,000 of these units are part of ten plans currently under discussion, with an additional estimated 20,000 units planned across 15 new sites in early planning stages. This initiative follows a significant shift in the Planning Administration's approach over the past year, moving past years of stagnation.

The most advanced project, nearing approval for deposit, involves constructing two 32-story towers with 400 apartments and commercial/office space in Givat Shmuel. This project replaces a previously approved plan for 52,000 square meters of office space that was never realized. The development is facilitated by a nearby plan to build an underground tunnel for Highway 4, which will free up land for the towers. Half of the planned apartments will be "micro-apartments" of 50 square meters, targeting young, childless households.

The committee, established in January 2022 following legislation, aims to address the surplus of unused office development plans and the urgent need for more housing to curb rising prices. Initial resistance from mayors, concerned about reduced municipal tax revenues from commercial properties, slowed the committee's progress. However, organizational changes within the Planning Administration, including the creation of a housing and urbanism division, have revitalized the committee's proactive approach.

The committee now focuses on large, strategic sites and collaborates with local authorities. The strategy involves mixed-use developments, integrating residential units with existing or planned commercial and office spaces to create incentives for developers. The committee's authority has been extended until the end of 2029, and it can now convert commercial land to residential use as well.

Despite the progress, the mayor of Givat Shmuel, Yossi Brodny, strongly opposes the specific project in his city, calling it "draconian" and detrimental to the city's infrastructure, quality of life, and economic engine. He argues that removing 52,000 square meters of employment space will harm the city's growth and services, and criticizes the plan for its density, lack of green spaces, and proximity to a busy highway, while ignoring air pollution and traffic congestion issues. The mayor vowed to use all available legal and public means to stop the plan.