Israeli Real Estate Firm Plans Major Redevelopment of Properties

The Southern District Planning and Building Commission has approved for deposit a plan to significantly expand the Star complex in Ashdod. The plan covers approximately 107 dunams and includes provisions for up to 1,850 new housing units, alongside commercial and employment spaces. Up to 450 of these units are designated for special rental housing.

Ari Real Estate's CEO, Tzachi Abu, stated that the company is undertaking a comprehensive redevelopment and enhancement of all its properties. Beyond the Ashdod project, Abu mentioned plans for around 300 housing units near a mall in Nahariya, an expansion of 30,000 square meters for employment in Eilat, and a commercial center with 200 small rental units in Tel Hashomer, with an additional 200 units also proposed there. The company is also advancing housing projects in Limassol and Kiryat Park Lachi in Ashdod. Abu intends to rent out the smaller units in the Ashdod Star Center, rather than sell them, with construction planned over two decades.

The National Planning and Building Council has approved the establishment of a new Druze village in the Galilee, near the Yavor Junction. This decision follows a recommendation from the Committee for Principal Planning Issues and will now move to a more advanced planning stage. The village will be situated on state-owned land. The establishment of a new Druze settlement was initially decided upon in 1998, with various locations considered over the years. In January 2025, the High Court of Justice issued a conditional order compelling the state to update on the settlement's progress.

In Pardes Hanna-Karkur, the Shi Hai Group has demolished three old buildings containing 36 apartments to construct four new five-story buildings with a total of 80 new apartments. This is the first urban renewal project of its kind in the locality. The project is being executed under a complementary land arrangement. The first phase of the project included 70 units, and the second phase, now commencing, involves the demolition and construction expected to take approximately two years. The original 36 apartment owners will receive new, larger apartments with enhanced features, while the remaining 44 new apartments will be put up for sale.

Furthermore, the National Planning and Building Council has adopted a reform allowing Israeli planners to rely directly on European standards (Eurocodes) when no up-to-date Israeli standard exists. This move aims to facilitate the adoption of advanced construction technologies, materials, and methods in Israel. The reform replaces prescriptive regulations with a performance-based design approach, focusing on required outcomes rather than dictating specific solutions. Rafi Elmaliach, Director General of the Planning Administration, believes this will reduce construction costs and labor dependency, while Beni Arbiv, Chairman of the National Planning and Building Council, stated the new regulations align Israeli planning rules with global technological advancements.