Holon signs its first framework agreement: 3.1 billion shekels and 11,000 new homes

The new real estate market in Holon is entering a new phase. According to Merkaz HaNadlan, the city has just signed its first framework agreement with the State, which includes around 3.1 billion shekels for its development and approximately 11,000 new homes.

For buyers seeking an affordable alternative to Tel Aviv, whether they live in Israel or are arriving from abroad, this announcement deserves a closer look.

What Was Signed

Details about the neighborhoods involved and the timeline will be specified as the project progresses. However, the main principles of a framework agreement already give an idea of its scope.

What is a framework agreement

A framework agreement (heskem gag in Hebrew) links the State and a municipality around one goal: accelerating housing construction.

- The State finances a significant part of the infrastructure: roads, networks, schools, daycare centers, public facilities, sometimes transport;
- The municipality commits to approving and advancing a defined number of housing units, within set deadlines.

The benefit for a city is clear: building a large number of homes is expensive in terms of public facilities, while municipal taxes are not always enough to cover these costs. The framework agreement brings this funding in exchange for a production commitment.

For residents and future buyers, it guarantees that new neighborhoods are not built without schools or roads.

Holon Today

Holon is a large family-friendly city south of Tel Aviv, bordering Bat Yam and Rishon LeZion. In the first half of 2026, its average price was about 2.342 million shekels, up 0.7% year-on-year, according to CBS data analyzed by Ynet.

Holon thus offers a price about 47% lower than that of Tel Aviv. See our analysis of Gush Dan.

What This Means for Buyers

A Large Supply of New Homes Coming Soon

Around 11,000 homes—a considerable number for a city of this size. For buyers, this means more options in the coming years, and competition among developers that generally favors negotiation.

Financed Facilities

The framework agreement secures funding for schools, roads, and facilities. This is an important point for families, who often move in during the early phases of a new neighborhood.

A City in Transformation

Public investments are gradually transforming the image of the city. In the medium term, this can support the attractiveness and value of homes, though there is no guarantee of price increases.

Key Points to Watch

1. Timeline: A framework agreement spans many years. The first homes will not be delivered immediately.
2. Local Oversupply: If many projects are marketed at the same time, prices may remain under pressure—an advantage for buyers, but something investors should monitor.
3. Early Phases: Buying early in a new neighborhood can offer a better price, but means living for several years near construction sites.
4. Developer Reliability and the guarantee for each payment, to be checked by your lawyer.
5. Total Cost: 18% VAT included for new builds, acquisition tax depending on your profile, closing costs around 10–13%. Compare with the city budget simulator.

This type of agreement comes as construction starts are slowing nationwide. See Q2 2026 figures.

Holon and Its Neighbors

Holon is part of a rapidly transforming urban area south of Tel Aviv. Bat Yam is developing its seafront and benefits from the Red Line tram, while Rishon LeZion is expanding its western neighborhoods toward the sea. For buyers, these three cities form a shared market, where price differences remain modest. Comparing new developments across this whole area, rather than just one city, often helps find a better balance between location, price, and amenities.

For families moving from abroad, Holon also offers the advantage of a human-scale city, with many parks and facilities for children, while staying close to Tel Aviv.

IsraelStart monitors new projects in Holon and southern Gush Dan among more than 300 developments throughout Israel, and supports buyers from abroad as well as Israelis already on site with a lawyer, broker, and architect. A personalized, no-obligation assessment lets you see if Holon matches your plans.

Sources

- Merkaz HaNadlan, signing of the first framework agreement in Holon (09/20/2026).
- Central Bureau of Statistics (CBS), average prices by city for the first half of 2026.

Figures and decisions reported by the Israeli economic press, reformulated and put into perspective by the IsraelStart editorial team. Indicative information, to be confirmed with a lawyer, broker, and expert before making any decision.