Tel Aviv Leads Urban Renewal as 77% Concentrated in Just 10 Cities

In the first half of 2026, approximately 8,500 new housing units began construction under urban renewal projects, with a significant concentration in Israel's central region, according to an analysis of Central Bureau of Statistics data. Tel Aviv leads the nation in urban renewal, initiating 1,987 new units, comprising 58.8% of all construction starts in the city during this period. Petah Tikva ranks second with 956 urban renewal starts, representing 78.4% of its total construction, followed by Bat Yam with 813 units, making up 68.8% of its new builds.

Jerusalem is fourth with 644 urban renewal starts, but these constitute only 19.8% of the city's overall construction. Netanya follows with 499 urban renewal starts, accounting for 47.5% of its total. The top ten cities combined account for about 6,550 of the total 8,500 urban renewal starts nationwide in the first half of 2026, approximately 77% of the national total.

While central cities see urban renewal make up between 40% and 80% of their total construction, some peripheral cities have no urban renewal projects underway. Conversely, Yavne stands out with all 225 housing starts in the first half of 2026 being part of urban renewal, and Nes Ziona also shows a high proportion with 87 out of 108 starts. Several cities, including Elad, Ofakim, Netivot, and Tiberias, have seen substantial construction but no urban renewal projects.

While the number of new construction starts has remained relatively stable over the past two years, a report from the Israel Land Authority indicated a nearly 15% decrease in urban renewal building permits issued in 2025 compared to 2024. In 2025, permits were issued for 28,902 housing units under urban renewal. A continued decline in permits could impact future project execution, although there is not always a direct correlation between permits and actual construction commencement.