On video: Aura Pivco Bat Yam project (Editor: Gilad Man Mannheim)
The Governmental Authority for Urban Renewal concludes a record year in issuing building permits for urban renewal throughout the country for approximately 27,000 housing units, with the large jump in permits due to the success of the framework agreements for urban renewal.
Out of all the permits, about 16,000 permits for housing units were approved in TMA 38 projects and about 11,000 were approved in eviction projects.
Jerusalem, Lod, Bat Yam, Kiryat Ono and Haifa are the leading cities in Israel in issuing building permits in Israel
Bat Yam is one of the leading cities in Israel in urban renewal
Aura Bat Yam (photo: screenshot, screenshot)
The Governmental Authority for Urban Renewal informed the local authorities with which it signed the framework agreements for urban renewal, of the grant it will transfer to them for the development of infrastructures supporting urban renewal in respect of the building permits they issued.
The agreements, which are based on a competitive mechanism between the local authorities that signed them, with the aim of stimulating the rapid issuance of building permits, made it possible to receive a grant for permits from the beginning of August 2021 until the end of 2022, where the more permits the local authority issues, the larger the budget share for the development of the infrastructure , from a fund set aside by the government authority for urban renewal for this purpose, the total scope of which is NIS 440 million.
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The leading cities in urban renewal approvals in Israel (photo: image processing, the Urban Renewal Authority)
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The incentive provided by virtue of the agreements has proven its effectiveness, in view of the data indicating approximately 5,200 construction permits were issued for housing units under construction in 2021, and double the amount in 2022, with approximately 9,500 housing units under construction in these cities.
It will also be mentioned that in the past decade, between the years 2010-2020, an amount of about 1000 to about 3000 building permits were given every year, only.
In view of the success of the mechanism of the framework agreements to promote urban renewal, the Minister of Construction and Housing, Yitzhak Goldknopf, reached a coalition agreement according to which an additional budget of NIS 550 million will be guaranteed in the upcoming state budget for the continued implementation of these agreements, and even their expansion to another circle of local authorities in the years 2023-2024.
Yitzhak Goldknopf, Minister of Construction and Housing:
"Urban renewal provides quality of life, infrastructure upgrades and new and safer housing for Israeli citizens living in old cities. Along with all the actions we are taking to promote housing solutions, within the framework of the coalition agreements, we were able to obtain budgets that will increase the expansion trend of Urban renewal all over the country and these are reflected in these permits."
Elazar Bamberger, CEO of the Governmental Authority for Urban Renewal
: "The urban renewal industry in Israel is the fastest growing industry in the field of housing. The improved regulation, the experience gained among the many companies operating in the field, and the encouragement of activity with government tools and resources, resulted in record numbers of building permits in the last year. In the meantime, we saw the significance of the financial incentive that was put in favor of the authorities the locality by virtue of the framework agreements for urban renewal, and which resulted in an increase in the scope and pace of permits this year. In 2023, we will strive to maintain and even intensify the momentum, with the aim of bringing about the promotion and acceleration of urban renewal projects, both in the areas where it already operates today, and in new areas that have not yet been established on the map of urban renewal. We anticipate a further increase in the scope of planning and implementation of projects, with full activity output in the center of the country, alongside the buds of renewal in the periphery."
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urban renewal
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