Urban Renewal

Your Guide to Urban Renewal

Everything you ever wanted to know about urban renewal

What is urban renewal? What’s the difference between Vacate & Build and TAMA 38/2? How do I know if my building meets the basic conditions required for a Vacate & Build project? How do I get an urban renewal project started? And when will I be able to relax in my new apartment? You’ll find all the answers in this special guide we have prepared for you. Now you can start your journey to a new modern home and enjoy the highest construction standards when you embark on an urban renewal project with Tidhar!

Urban renewal is the general term for the process in which an old, physically rundown urban area is rejuvenated, rehabilitated, and given an overall facelift. This usually happens in one of three ways:

  1. Urban renewal that occurs naturally and gradually over time, in that the current residents of the neighborhood put pressure on the local council to improve and upgrade the dilapidated infrastructure.


  1. A developer identifies the potential within the neighborhood (low-rise, low-density construction in a high-demand area) and kickstarts the process. Usually this begins with obtaining a new building permit that enables construction rights to be added to the building, so the developer can fund the project and make a profit.


  1. The Ministry of Housing, in cooperation with the local authorities, initiates the project in certain areas they have defined. This is undertaken in order to improve land utilization, give the area an overhaul, and enhance urban infrastructure (paving roads, adding green areas, increasing parking spaces, etc.).


At Tidhar, we view urban renewal as a partnership between you and the developer. You bring the land; the developer brings the experience, financing, and capabilities in regard to planning and construction. Together, we transform a ramshackle old building into a safe and modern new property that delivers higher value for you.


Who benefits? Everyone!

You get a nice new apartment, the developer profits from the sale of the additional apartments, the local council reaps the rewards of various public benefits and a more visually appealing city, and the general public enjoys more apartments being available in high-demand locations.

The city building plan, or CBP (and sometimes referred to as just “the plan”), determines, among other things, the zoning of particular areas (residential construction, commerce, green areas, public buildings, etc), as well as the type of permitted use, the size of the buildings that can be constructed there (building rights), the number of floors, the distance of the building from the edge of the lot, and so on.


Each plan actually consists of two main documents. The blueprint is a sort of map showing the land zoning, building lines, boundaries, and so on, all to scale. The regulations then explain the plan in writing, laying out its specific objectives and instructions.

In the case of large projects, it is often necessary to make alterations to the existing CBP, in order to change the zoning or expand the building rights of the lot. This means that we must prepare a new CBP that includes the changes we want to make, submit it to the relevant committee (local or regional), and publicly announce the submission, so that the public can review the plan and submit their objections if they wish.

  • TAMA 38/1 – Renovating and reinforcing the existing building, with the addition of floors/apartments by the contractor. Tidhar does not promote or perform projects of this kind.
  • TAMA 38/2 – Demolishing the existing building and constructing a new building on the site, with the addition of floors/apartments by the contractor. This type of project utilizes existing building rights and only requires a building permit, without changes to the city building plan.
  • Vacate & Build – Demolishing the existing building and constructing a new building on the site, with the addition of floors by the contractor. This process involves changing the city building plan, increasing the building rights, and securing a building permit.
  • Build & Vacate – Constructing a new building and then demolishing the existing building, with changes to the city building plan. In this type of project, the new building is completed before the residents have to leave the old building, so they can move straight into the new building. Build & Vacate projects are only possible where there is a vacant land reserve adjacent to the project, and the relevant authorities are willing to allocate this vacant land to the project in exchange for the land that was home to the old building.

An urban renewal projects benefits all parties.


From the perspective of the apartment owners, this is an opportunity to get a larger apartment with a sun balcony, safe room, parking, and storage area in a new modern building with an elevator, while also enjoying increased property value – all without any expense on their part.


For the developer, it is a business opportunity that enables the company to add several apartments in the new building. These apartments are intended for sale to the general public and will therefore fund the entire project, while ensuring the developer will profit.

From the point of view of the local authority, this is a chance to give the city a facelift and offer residents improved safety and wellbeing.

Finally, for the general public and society in general, this is an invaluable opportunity to benefit from new apartments being made available in high-demand areas that usually do not have new land reserves available for construction. The project will also likely include additional public areas and buildings to provide various services for residents’ welfare.

Tidhar at your service

The Tidhar people are at your service. We invite you to contact us:

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    Sales and Service ✱8383 | Office ✱3604

    14 Hatidhar Street, Ra’anana