Herzliya Advances Detailed Planning for 12,500-Unit Blue Beach Development
The Blue Beach development plan in Herzliya, covering one of the most sought-after land areas in central Israel, has progressed to a new stage. The Herzliya Local Planning and Building Committee recently published the detailed draft plan for Complex 1, the northernmost of three designated planning complexes under the broader Southwest Herzliya plan (Plan HR/2200/A). This marks a transition from general planning to detailed planning, which will define land use, rights allocation, and plot distribution.
Approved in 2022 as a master plan, Blue Beach was divided into three complexes. The northern complex (Complex 1) will be developed by the company Dira LeHaskir, while the other two complexes will be managed by the Israel Land Authority. The entire plan includes approximately 12,500 housing units, 512,000 square meters of employment space, 134,000 square meters for hotel use, and 69,000 square meters for commercial areas. Complex 1, spanning about 595 dunams in southwest Herzliya, will feature residential towers up to 30 floors along the light rail route, buildings up to six floors along the seaside road, and up to 15 floors elsewhere. It will contain around 4,000 housing units with a mix of regular housing, affordable long-term rental (at least 25%), and urban affordable housing, alongside commercial, employment, hotel, public buildings, and parks.
Before the plan's official deposit, Dira LeHaskir will allow tens of thousands of rights holders to declare their membership in legally represented groups, which will receive priority for joint building allocations. Attorney Miri Donin-Shuv, representing thousands of rights holders in large multi-owner projects including Complex 1, explained that Israeli law mandates allocating independent plots to owners who voluntarily unite under shared agreements. This "rights pooling" principle, enforced by planning appraisers, ensures that grouped owners receive entire plots together.
Donin-Shuv emphasized that after the detailed plan's approval, these groups can begin joint construction projects and realize their rights. She warned that unorganized owners risk losing up to 40% of their land value, citing past cases where developers took over unorganized plots, forcing owners into lengthy legal disputes and forced sales that diminish their economic returns. The current stage is critical for rights holders to organize and avoid losing control or facing protracted legal battles that could lead to forced sales to third-party investors.
