Rishon LeZion Project to Replace Five Buildings with 232 New Apartments

A major urban renewal project is underway in the Ramat Eliyahu neighborhood of Rishon LeZion, where construction company Av-Gad has secured the necessary majority of property owner signatures to proceed with a "pinui-binui" (demolition and construction) initiative on Zalman Schneur Street. The plan involves demolishing five older residential buildings containing 80 apartments and constructing three new buildings with a total of 232 apartments, nearly tripling the housing capacity on the site. The existing buildings are located at numbers 36, 38, 40, 42, and 44.

Av-Gad announced on October 11, 2026, that it had obtained agreements from owners representing 67.5% of the property rights, surpassing the legal threshold for advancing the project. Of the 232 planned apartments, 136 will be offered for sale on the open market, with the remainder allocated to the original property owners. The project's preliminary financial assessment projects approximately 360 million shekels in revenue before VAT and an estimated 71 million shekels in gross profit.

Construction is tentatively scheduled to begin in 2030 and conclude in 2034, with the project currently entering the phase of developing a new urban building plan. The future residential complex will be situated in western Rishon LeZion, benefiting from proximity to major commercial and business centers, including the "Kanyon HaZahav" mall, and enjoying good transport links. Educational institutions and other public infrastructure are also nearby.

Av-Gad CEO Raam Ratzon stated that the company views Rishon LeZion as a promising area for its operations and is pleased to reach the signature threshold for this project, initiating the urban planning process. He noted that this is one of three renewal projects Av-Gad is pursuing in the city, with others on Tel Hai and HaDror streets. These projects are expected to deliver around 1,270 new apartments, though other company data suggests 741 apartments across three planned projects, a discrepancy not explained in the release.

Av-Gad has prior experience with urban renewal in Rishon LeZion, having received occupancy permits in June 2026 for a Tama 38/1 project on Shmuel Shriro Street that added 37 new apartments to an existing 87. Founded in 2009 by reserve Colonel Michael Ratzon, who serves as chairman, Av-Gad specializes in residential construction and urban renewal, having completed approximately 761 apartments in 24 projects nationwide. The company's current portfolio includes about 38,956 apartments in various stages of development, with 1,824 apartments in 12 projects expected to commence construction within the next year.