Public Service Announcement: There may be an end to Tama 38 after all (Click here to read our Blog post about Tama 38, and what it means)  The Israeli Planning Administration has initiated a proposal to stop the Tama 38 Building Plans. Meaning: If this plan is accepted and moves forward, developers will no longer be able to proceed with Tama 38 on apartment buildings throughout the country.

While it may seem obvious to most why Tama 38 is a great urban renewal program in Israel, there are some varying factors as to why some believe it is not best for the country (or at least for certain cities/neighborhoods within the country)

True, it has created many more living accommodations and options for purchasing apartments in Israel throughout the country, however, developers aren’t eager to take on such projects in lower economical neighborhoods. As a result, it has created a drastic difference between higher-end socio-economical neighborhood and lower-end socio-economical neighborhoods.

Having stated the above, it has caused an over population in many neighborhoods, thus resulting in a conflict with the City Planning Council. They have less control over city planning, making it more difficult to balance out each neighborhood with the public needs that are required (such as: parks, schools, shops, public transportation, etc)

What does this mean for current Tama 38 Plans and the potential future Tama 38 Plans?

If this law is approved and passed, it would mean that after May 2020, cities will need to plan decide how many of these projects they will allow, and in what neighborhoods they will allow it. It opens the Tama 38 option with a big uncertainty.

Tama 38 Projects that are currently in the renewal process, or in the process of getting all of the permits, will most-likely be able to continue with the process, but anything new presented, may not get approved.

How can this effect the real estate market?

The uncertainty of the Tama 38 can affect the real estate market in two ways: 1. By stopping with the Tama 38, the supply for apartments will go down; 2. Because the supply will go down, people may still price their apartments for purchase in Israel, at higher price points (despite the fact that Tama 38 will no longer be an option, so people won’t factor that into the price) The prices will still remain higher because the supply will have gone down.


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We have a variety of apartments for sale in Israel, but can help you find whatever is you may be looking for.