Israel's Central Region Leads Nationwide Urban Renewal Projects

In the first half of 2026, construction began on approximately 8,500 apartments across Israel as part of urban renewal initiatives, with the majority concentrated in the country's central regions. This data, analyzed by the Central Bureau of Statistics and reported by Calcalist, indicates a significant regional disparity in renewal efforts. Tel Aviv leads the nation, with construction starting on 1,987 renewal apartments, representing 58.8% of all new construction in the city during the period. Petah Tikva followed with 956 renewal apartments (78.4% of its new construction), and Bat Yam with 813 (68.8%). Jerusalem, despite a large overall construction volume, saw renewal projects account for only 19.8% of its new builds.

The data highlights that in central cities, urban renewal constitutes 40% to 80% of total construction, while some peripheral towns have no renewal projects at all. Yavne stands out, with all 225 new apartments initiated in the first half of 2026 being part of urban renewal. Conversely, cities like Elad, Ofakim, and Netivot began construction on hundreds of new apartments without any urban renewal projects.

While the pace of construction starts remained relatively stable compared to 2025, a report from the National Council for Urban Renewal indicated a 15% decrease in building permits issued for renewal projects in 2025 compared to 2024. In 2025, permits were issued for 28,902 renewal housing units, with 13,066 for "Pinui Binui" (evacuation-construction) and 15,836 for TAMA 38 projects. Although permit issuance and the start of construction are distinct phases, a sustained decline in permits could impact future construction starts, as developers may delay or abandon projects after receiving approval.