TAMA 38 Explained by Region: Which Israeli Cities Still Offer Renewal in 2026
TAMA 38 ended nationally in August 2024, but active projects continue in limited cities—Tel Aviv, Jerusalem, Givatayim, and Rishon LeZion each follow different rules.
TAMA 38 (National Outline Plan 38) launched in 2005 to strengthen israel's aging building stock constructed before 1980 against earthquakes. But in 2026, the program landscape looks completely different than it did five years ago. The national window closed on August 29, 2024, and the final extension for nine cities expired on May 18, 2026. For olim and foreign buyers still evaluating urban renewal opportunities, understanding which regions still accept projects—and which rules apply locally—is essential.
This guide breaks down TAMA 38/1 (strengthening buildings while adding floors) versus TAMA 38/2 (full demolition and rebuild), then maps how each city approaches renewal differently. The regional variation matters enormously: what's viable in Tel Aviv's Florentin neighborhood carries zero risk in Jerusalem's Katamon, but Jerusalem's heritage laws mean projects move at a glacial pace. Givatayim actively promotes TAMA 38/2 demolition projects; Rishon LeZion still accepts applications through mid-2026; most other areas have moved entirely to municipal-led renewal schemes.
The Two TAMA 38 Tracks: Renovation vs. Demolition
Before mapping regions, understand what olim are actually signing. In return for reinforcing a building, developers receive building rights to add floors, balconies, elevators, and sometimes entire new apartments for sale. Residents don't pay for this—the developer finances everything and profits by selling new units.
TAMA 38/1 keeps the building and strengthens it, usually adding an elevator, safe rooms, and extra floors the developer sells. Only 66% of apartment owners need to agree for a TAMA 38/1 project to proceed, making these projects easier to implement than full demolitions. Residents typically stay in their apartments during construction, though for 3–5 years they endure noise and disruption.
TAMA 38/2 demolishes the single building and rebuilds it new, so owners move out and return to a brand-new apartment. 80% of apartment owners must agree for TAMA 38/2 projects to proceed, reflecting the more significant disruption and risk involved. This higher threshold reflects the complexity: residents relocate for 5–6 years while a construction site stands where their home was.
How TAMA 38 Works by City: A Regional Breakdown
Regional policy now trumps national rules. Rishon LeZion allows TAMA 38 until May 18, 2026, while major cities like Tel Aviv, Bnei Brak, and Bat Yam no longer permit new projects. The outcome is a fragmented landscape where the city you choose determines whether renewal is an option at all.
| City | TAMA 38 Status | Preferred Track | Key Feature |
|---|---|---|---|
| Tel Aviv | Expired (no new applications) | TAMA 38/1 ongoing | Light rail integration driving prices |
| Givatayim | Active municipal renewal | TAMA 38/2 favored | High-density demolition projects |
| Rishon LeZion | Until May 18, 2026 | Both tracks | Central location, moderate prices |
| Jerusalem | Active (via Pinui-Binui) | Heritage-sensitive 38/1 | Strict building code restrictions |
| Haifa | Expired, municipal plan pending | TAMA 38/1 ongoing | Older housing stock, lower values |
| Ramat Gan | Expired (May 18, 2026) | TAMA 38/2 completed | Urban densification completed |
Tel Aviv: Completed Projects, Light Rail Tailwinds, No New Applications
Tel Aviv officially halted new TAMA 38 applications years ago. TAMA 38 officially ended on August 29, 2024, but thousands of projects are still under construction or in planning stages. However, if you're evaluating a Tel Aviv property, many neighborhoods already show the renewal dividend: Florentin property values increased by 11% annually over the past three years, with three-room apartments now selling for ₪4 million, up from ₪3.2 million in 2022.
The light rail effect amplifies TAMA 38 gains. Apartments within 500 meters of Red Line stations increased by 10–15% in the year before the line opened; in Florentin specifically, two-bedroom apartments near HaTa'aruba station jumped from ₪3.5 million to ₪4 million within 18 months. For foreigners buying an existing Tel Aviv apartment in a completed TAMA 38/1 building, the neighborhood already reflects the upgrade—modern elevator, safe rooms (mamad), expanded apartments. The price you pay reflects that work already done.
Givatayim: TAMA 38/2 as Municipal Strategy
Cities such as Givatayim and Ramat Gan often promote full demolition (38/2) to increase density. Givatayim's approach differs sharply from Tel Aviv's: the municipality actively supported TAMA 38/2 projects to reshape low-rise residential blocks into modern, multi-story housing. The regulations have been exploited most consistently and extensively in North Tel Aviv, Givatayim, Ramat Gan, and Rishon Lezion.
For olim considering Givatayim, this means TAMA 38/2 demolition projects are already well advanced, and entire neighborhoods have undergone transformation. If you find a property in an ongoing Givatayim project, look for a signed agreement between residents and the developer, authority's approval already in place, and a developer with a proven history of delivering TAMA 38 projects. Givatayim has higher standards for contractor quality and municipal oversight than peripheral cities, reducing execution risk.
Rishon LeZion: The Last TAMA 38 Window (Until May 2026)
Rishon LeZion remains unique: new TAMA 38 applications are still accepted through mid-May 2026. The plan remains in effect until May 18, 2026, or until the municipality's replacement plan is approved. For olim who want to buy an apartment in a building about to launch a TAMA 38 project, Rishon LeZion offers one of the last opportunities for a developer-led urban renewal gain at a regional property price point between central Tel Aviv and Haifa.
Rishon LeZion's advantage is moderate unit costs (₪3–4 million for a three-room) and proven developer capacity. The disadvantage is timeline: even if a project signs in mid-2026, completion typically runs 5–7 years. Olim buying into a Rishon LeZion TAMA 38 project must accept a long hold period and expect to live through construction disruption.
Jerusalem: Heritage Restrictions Slow Everything
Jerusalem and Haifa rely more on reinforcement due to heritage considerations or weaker economic incentives; in Jerusalem, heritage restrictions often cause unpredictable delays. The city's historical and religious significance has led to strict preservation laws, and Jerusalem is located near the Dead Sea Rift, a fault line with significant earthquake risk.
Although the national government announced the gradual phase-out of TAMA 38 by 2026, Jerusalem is expected to remain a central stage for these initiatives via Pinui-Binui (evacuation and rebuild), which builds on the success of TAMA 38. For olim in Jerusalem, this means TAMA 38/2 demolition projects are rare—the municipality prefers gentler TAMA 38/1 reinforcement to preserve building character. A Jerusalem TAMA 38 project can easily stall for 2–3 years while the municipality weighs heritage impact.
Critical Risks by Region: What Foreign Buyers Need to Know
Regional variation creates region-specific risks. If a building you are eyeing has a Tama project attached, have your lawyer verify the permit status, because incomplete projects carry developer-abandonment risk. In Tel Aviv, the risk is low—projects are old, most are finished, and property values are stable. In Rishon LeZion or Givatayim, ongoing projects carry moderate risk tied to developer solvency. In Jerusalem, the risk is delay, not abandonment: heritage reviews and municipal appeals can stretch timelines by years.
What happens if a TAMA 38 developer goes bankrupt?
An Arvut Chok Mecher (Sale Law Guarantee) is mandated by Israeli law, and should the developer go bankrupt with your building demolished, this guarantee ensures you are made whole—either you receive your promised new apartment or the full financial value required to complete it. Regional enforcement varies slightly: Tel Aviv courts move faster on guarantee claims; Jerusalem courts are slower. Always have your lawyer verify the bank guarantee is in place and autonomous (not requiring developer permission to activate).
How do TAMA 38 projects differ between neighborhoods in the same city?
In Tel Aviv, neighbourhood masterplans overrode existing TAMA 38 rights, cancelling previously viable proposals; Tel Aviv's district plan reshaped feasibility in many neighbourhoods by restricting excessive height additions. This means two TAMA 38/1 projects in different North Tel Aviv neighborhoods may have vastly different outcomes. One might add three floors; another gets capped at one floor due to district-plan restrictions. Always ask your real estate lawyer whether the specific building's TAMA 38 permit aligns with the current district plan.
Are there tax benefits for buying a TAMA 38 apartment?
In a normal property sale, profit is subject to 25% Capital Gains Tax, but in a TAMA 38 project, the
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Solly Marks is an Israeli property analyst and publisher writing for diaspora Jewish buyers and investors. JewishPropertyReport covers real estate prices, buying guides, and market data across Israel — practical intelligence for overseas buyers.