National Trends in Israeli Real Estate

The national and local authorities that govern the zoning of neighborhoods and cities have been giving their support to several types of urban projects.

1. The strengthening of old buildings against earthquakes. In this type of project a builder is allowed to add on a couple of floors to an apartment building and sell the apartments that he builds.  In return, the builder renovates the building in several ways.

  • Each apartment in the building gets a security room.
  • The building’s foundations are strengthened, thereby protecting it against earthquakes.
  • The electricity and plumbing of the building is upgraded and modernized.

This is a popular arrangement for both builders and apartment owners. The apartment owners gain an extra room and a refurbished building, and the builder makes money by selling the new apartments that he builds.  These types of projects, although needed throughout the country, are most prevalent in the center of the country where apartment prices are higher.

2.  Urban renewal by evacuating old buildings, demolishing them and building new buildings in their place. Not an easy process for many reasons, ultimately the displaced apartment owners are able to return to a new building and the price of their apartments are enhanced. The builder receives compensation for his construction work and is also able to sell any additional apartments that were built as part of the project.

3.  The preservation of historical buildings. In Israel many cities and towns have encouraged the renewal and preservation of historical buildings.  These projects bring tourists which boost business in those areas. The preservation of historical buildings protects the beauty of the buildings and the safety of the residents since all these projects secure the building against earthquakes.  In Tel Aviv alone the local authorities have declared about 1,600 buildings to be historical buildings.