Jerusalem Approves Conditions for 25-Story Katzamon Redevelopment Project
Jerusalem’s district planning committee has conditionally approved a redevelopment plan for San Martin Street 17 in the Kattamonim neighborhood, clearing the way for a 25-story residential tower with about 80 apartments. The decision was made on June 8 by the subcommittee for urban renewal, as part of an expansion of the San Martin 7-15 plan led by Dan Real Estate.
The project, promoted by Av-Gad Holdings, will demolish existing buildings containing 18 housing units and replace them with the tower, along with parking basements and storage rooms. Of the new apartments, 18 will be allocated to the rights holders in the property and 62 will be sold on the open market by Av-Gad.
The committee said the plan’s boundary should be expanded to include San Martin 17 while still allowing each of the two adjacent projects, one by Av-Gad and one by Dan Real Estate, to proceed separately. It adopted the Jerusalem local planning committee’s position, which was also supported by the developers and by residents in the project.
Av-Gad estimated preliminary revenue from the project at about 124 million shekels, excluding VAT, against expected expenses of about 97 million shekels, excluding VAT. Company CEO Raan Razon said this is Av-Gad’s second project in Kattamonim to reach district committee approval and that the decision paves the way for execution as part of the wider San Martin renewal scheme. He added that Jerusalem’s strong demand and rising home prices, despite a general slowdown in new-home sales, support the company’s push in the city.
The San Martin 17 project joins another Av-Gad project at San Martin 19-21, which is slated to receive validity in early 2026 and is now moving toward a permit. That project would replace two buildings with 36 apartments by a 30-story tower containing 155 units, 119 of them for sale. Av-Gad is also advancing a separate project in the Goma complex in Jerusalem, at an early planning stage, where about 190 existing units would be cleared for roughly 580 new ones.
