Ashdod: a shopping center transformed into a neighborhood with 1,800 homes

In Ashdod, a major shopping center could gradually become a true residential neighborhood. The Southern District Commission has just taken a decisive step by deciding to submit the plan. For buyers from abroad as well as Israelis already in Israel, this case illustrates a fundamental trend: Israeli cities are rebuilding themselves by transforming parking lots and commercial areas into housing.

What the Plan Provides

According to Nadlan Center (October 6, 2026), the Southern District Planning Committee has just decided to submit, with conditions, the redevelopment plan for a large commercial complex located on Jabotinsky Street, at the junction between the industrial zone and the city center. The goal is to gradually transform a car-oriented site into a mixed-use neighborhood combining housing, retail, jobs, and public facilities.

The towers are planned along Ben Gourion Boulevard and Weizmann Street. The plan reserves land for a primary school and provides for about 17,000 m² of additional public uses in the neighboring district, which is also being renewed.

A Shopping Center That Stays Open

A key feature: the existing shopping center will remain in place and operational during the development of the residential complexes. The housing will be built gradually around it, and new commercial spaces are planned to the west of the site. The arrangement is based on a negotiated land reallocation between private owners, the municipality, and the Land Authority. This kind of multi-party arrangement takes time.

One Third Are Small Units

With around 600 apartments of 55 m², the plan makes an unusual place for small units. This matches the demand: at the end of September, rental data published by Nadlan Center showed, over one month, a decrease in supply and stable rents for 1 to 3-room apartments, while larger units saw their supply surge. In Ashdod, rents had increased by only 0.7% over one year.

For an investor, a new small unit lowers the entry cost. For a young household, it is often the only gateway to homeownership in a coastal city.

Ashdod and New Developments: A City Lagging Behind on Its Roof Agreement

The roof agreement report published this week by Globes ranks Ashdod among the least advanced cities: only 14.95% of the housing units planned under the 2017 agreement have been marketed. Large new neighborhoods on public land are therefore delayed, and the redevelopment of existing sites is taking over. We detail these discrepancies in the roof agreement report.

The regional context also matters. At the end of September, the Ministry of Finance estimated the actual stock of unsold new homes in the Southern District at 11,457 units, including cancellations. Buyers therefore have real negotiating power on projects already for sale.

Price Benchmarks in the Area

For reference, Globes published on October 3rd recent resales in Ashkelon, the neighboring city, according to the Tax Authority: a 4-room apartment of 103 sqm at 1.77M₪ and a 3-room apartment of 77 sqm at 980,000₪, or about 12,700 to 17,200₪/sqm. Prices in Ashdod are generally higher: compare at the same budget with our city budget simulator.

What to Keep in Mind

- Plan Stage. A conditional deposit starts the objections phase. Final approval, permits, and marketing will come later, with no announced timeline.
- Phasing. A neighborhood built in stages means years of construction for the first residents.
- Mixed Use. Living above or next to shops provides services, but also foot traffic and noise: the lot's position in the neighborhood is crucial.
- Special Units. Around 400 units are set aside for student or senior residences: these are not standard purchase options.
- Building Heights. 30-story towers along main roads will change the views and sunlight for neighboring buildings.

Buying in Ashdod Today

For a buyer from abroad, Ashdod combines a coastline, a large French-speaking community, and prices lower than those in the center of the country. For Israelis already living in Israel, it's a city of employment driven by its port, where you can still aim for spacious properties.

In both cases, prioritize developments with a permit and bank guarantees, and calculate the full cost: 18% VAT included in the price of new properties, closing costs of 10 to 13%, and purchase tax (Mas Rechisha) to be checked based on your profile—estimate with the taxes and fees calculator.

Three experts support you: lawyer · broker · architect. The lawyer checks the plan, permit, and contract; the broker negotiates financing; the architect analyzes the lot, its exposure, and its future environment.

Visit the Ashdod page to follow current developments. IsraelStart lists 300+ new projects across Israel: request a personalized assessment, with no obligation.

Sources

- Nadlan Center — Ashdod: 1,800 housing units for the neighborhood replacing a shopping center (10/06/2026)
- Globes — Rooftop agreements: the report (10/06/2026)
- Globes — Actual stock of unsold properties in the Southern District (09/27/2026)
- Nadlan Center — August 2026 rents, WeCheck data (09/27/2026)
- Globes — Recent resales in Ashkelon (10/03/2026)