Urban Renewal in Israel: City Rankings for the First Half of 2026

Urban renewal has become a key driver of housing production in Israel, especially in the dense central cities where available land is scarce. Data from the first half of 2026 shows a slightly growing market, but with significant differences between cities. Whether you are buying from abroad or already living in Israel, this ranking helps identify where new projects are concentrated.

Urban Renewal: What Is It About?

Two main mechanisms coexist. Pinoui-Binoui involves demolishing one or more old buildings to rebuild a denser complex, often in the form of towers. Tama 38, in its two versions, allows for strengthening an existing building against earthquakes by adding floors, or demolishing and then rebuilding it. In both cases, the original owners receive a new apartment, and the developer sells the additional units on the market.

City Rankings for the First Half of 2026

According to CBS data published by Globes on September 29, 2026, about 9,600 housing units were started as part of urban renewal projects in the first half of 2026, an increase of 5% compared to the first half of 2025.

Source: CBS, data published by Globes.

Tel Aviv maintains its dominance, driven by a large stock of older buildings and strong demand. Petah Tikva and Bat Yam complete the top three, two cities where urban renewal is transforming entire neighborhoods.

Semester Surprises: Wave Effect

Several cities are experiencing spectacular fluctuations. Yehud-Monosson jumps from 9 to 440 housing units started, Haifa doubles its volume, and Netanya multiplies it by nearly seven, all according to CBS figures cited by Globes. The newspaper explains these gaps by a wave effect: large projects, planned for years, are simultaneously moving out of the authorization phase.

Conversely, Ramat Gan drops to 9th place with 314 units, compared to 707 a year earlier. The municipality now indicates a preference for new construction zones, particularly around the Bursa district where several towers are under consideration.

Jerusalem: conflicting figures

The Jerusalem municipality disputes the CBS figures. According to the municipality, 5,100 housing units were launched in 2026, compared to 6,000 in 2025, covering a broader area than just urban renewal. The CBS data is current as of June, which explains part of the discrepancy. This kind of divergence is a reminder to always check the source and scope of a figure before drawing investment conclusions.

What This Ranking Means for a Buyer

Urban renewal is taking on a growing role as the supply of public land declines sharply, as we analyze in our article on the drop in land tenders. In central cities, it often represents the main source of new housing.

Buying in an urban renewal project offers advantages: established location, existing transportation and services, and sometimes lower prices compared to entirely new neighborhoods of similar standard. But there are specific risks: delays due to owner agreements, legal appeals, permit modifications. For a buyer from abroad, remotely monitoring these steps requires careful support. For an Israeli already living in Israel, proximity allows for neighborhood visits, but legal checks are still necessary.

Essential Checks Before Signing

Before committing to an urban renovation project, several points must be verified:

- The status of the building permit and the actual progress of the works.
- Registration in the land registry, to be checked with our Tabo guide.
- Bank guarantees required by law for new home sales.
- The total cost, with 18% VAT included in the price of new properties, and the purchase tax (Mas Rechisha) to be confirmed according to your profile, to be estimated in the taxes and fees simulator.

The lawyer secures the contract and guarantees, the broker arranges financing adapted to a sometimes uncertain schedule, and the architect analyzes the plans, surfaces, and technical specifications. This trio—lawyer, broker, and architect—is especially valuable, as urban renovation projects involve more variables than developments on vacant land.

In Brief

Urban renewal is advancing by 5% in the first half of 2026, with Tel Aviv, Petah Tikva, and Bat Yam leading the way, while cities like Haifa and Netanya are rapidly accelerating. For a comprehensive market overview, check out our weekly summary. Browse over 300 new projects across Israel and request a personalized review, with no obligation.

Sources

- Globes — Urban renewal, project launches H1 2026, CBS data (29/09/2026)
- Globes — Israel Land Authority tenders (28/09/2026)
- Globes — Ramat Gan, Diamond Exchange District (30/09/2026)