Israel Sees 15% Drop in Urban Renewal Construction Permits in 2025
In 2025, Israel experienced a significant decrease of approximately 15% in construction permits issued for urban renewal projects compared to the previous year, according to a new report from the State of Israel National Urban Renewal Authority. Local authorities granted permits for a total of 28,902 housing units under these programs. Of these, 13,066 apartments were approved through "Pinui-Binui" (evacuate-build) initiatives, and an additional 15,836 were part of TAMA 38 projects, which focus on strengthening buildings against earthquakes and improving them.
The report highlights a substantial geographical disparity in urban renewal activity. In the central regions of Israel, urban renewal accounts for 40% to 80% of all new construction. Cities like Yavne lead in this category, with all new apartments designated for urban renewal. Nes Ziona, Petah Tikva, Ramla, Bat Yam, Ramat HaSharon, and Ra'anana also show high percentages of renewal projects.
Conversely, several cities with active housing construction saw no urban renewal projects initiated. These include Elad, Ofakim, Netivot, Tiberias, Beit Shemesh, Kiryat Malachi, Eilat, and Shoham. No "Pinui-Binui" or TAMA 38 projects have commenced in these locations.
Experts emphasize that there is a time lag between permit issuance and the actual start of construction. While regulations require developers to begin building within a year of receiving a permit, delays and postponements are common in practice. This ongoing reduction in permit approvals could lead to a decline in actual construction volumes in the future.
