Massive Urban Renewal Project Approved for Sderot, Adding Over 500 Housing Units
The Southern District Planning and Building Commission has approved a large-scale urban renewal project in Sderot, set to add 515 new housing units and approximately 1,800 square meters of commercial space. The "Palmach Complex Renewal" plan, located in the city center on a 32-dunam site, aims to revitalize the area by replacing 139 existing housing units in three older buildings with ten new structures. This project is a significant step in urban renewal for Sderot, which was severely impacted by the October 7th attacks, leading to resident evacuations and some canceled real estate deals.
The plan includes a mix of housing, commercial, employment, and public buildings, with a focus on creating accessible public spaces. New commercial areas are planned along Menachem Begin and Herzl streets, and a central public "heart space" will feature two public buildings, open areas, pedestrian paths, and play facilities, built over a covered parking lot. The project also allocates 2.5 dunams for public needs, including a kindergarten and a general-purpose building.
Despite the initial shock and disruption following October 7th, real estate transactions in Sderot, as well as in nearby Ofakim and Netivot, have shown resilience and begun to recover within months. The average price for new apartments in Sderot ranges from 14,000 to 16,000 shekels per square meter, with smaller units potentially selling for 16,000 to 19,000 shekels per square meter. This represents a significant increase in value, as previous "Price for Me" program buyers acquired apartments for 900,000 to 1 million shekels.
Michal Meril, Southern District planner at the Planning Administration, stated that the plan is a significant first step for urban renewal in Sderot, expanding development options and offering a diverse mix of housing and urban uses. Oded Pelus, Chairman of the Southern District Planning and Building Committee, added that the approval is a milestone for developing and strengthening Sderot's older urban fabric, meeting growing housing demands and improving residents' quality of life.
