What Are TAMA 38 and Pinui Binui?
Jerusalem, one of the most historically rich cities in the world, faces a modern challenge: aging infrastructure. In response, Israel launched two major urban renewal initiatives ā TAMA 38 and Pinui Binui ā designed to strengthen buildings against earthquakes and modernize older residential areas.
These programs are transforming the city’s skyline and offer both risks and rewards for buyers and investors.
TAMA 38: Strengthening Buildings, Adding Value
TAMA 38 (short for National Outline Plan 38) is a government program that encourages developers to reinforce existing buildings built before 1980. In exchange for upgrading seismic safety, developers are allowed to add new floors or units and sell them on the open market.
Key Features:
- Strengthens older buildings to meet earthquake standards
- Often includes new elevators, modern facades, and safer stairwells
- Residents usually stay in place during renovations
- Developers add apartments or penthouses, increasing the building’s value
Where It’s Happening:
In Jerusalem, TAMA 38 is common in neighborhoods like Katamon, Bayit Vegan, Armon Hanatziv, and parts of Kiryat Yovel ā areas with many pre-1980s buildings and growing demand.
Pinui Binui: Demolish & Rebuild
Pinui Binui (literally āevacuation and reconstructionā) goes a step further: entire residential blocks are demolished, and new modern buildings are constructed in their place. Residents are temporarily relocated and return to new apartments with better layouts, amenities, and more space.
Key Features:
- Full demolition and rebuild of aging complexes
- Projects typically span 5ā10 years from planning to completion
- Residents receive new, upgraded apartments ā often larger
- Developers gain rights to build additional units for sale
Popular Areas:
Jerusalem neighborhoods undergoing large-scale Pinui Binui projects include Gilo, Kiryat Hayovel, and Pisgat Ze’ev, where large tracts of aging housing stock offer prime opportunities for redevelopment.
Why Urban Renewal Matters for Buyers & Investors
š¼ Rising Property Values
Properties in buildings undergoing TAMA 38 or Pinui Binui often appreciate significantly post-renovation. New units sell at a premium, and existing residents gain value through upgraded infrastructure and amenities.
š¼ Investment Opportunities
For investors, pre-renewal properties in renewal zones can offer excellent upside ā if you’re willing to wait. Buying into an older building slated for redevelopment means lower upfront costs with long-term gain potential.
š§© Legal Complexity
These projects are legally and bureaucratically complex. Always engage a real estate attorney who specializes in urban renewal to:
- Verify permits and developer obligations
- Review timelines and risk exposure
- Clarify your rights as a buyer or tenant during or after construction
Things to Watch Out For
- Delays: Projects often face delays due to planning disputes, resident objections, or municipal approvals.
- Temporary Inconvenience: If you live in a building undergoing TAMA 38, expect noise, dust, and disruption.
- Speculation Risk: Buying in a building merely rumored to be redeveloped can backfire if plans fall through.
Who Should Consider Buying into Urban Renewal Projects?
- First-time buyers looking for relatively affordable entry points in Jerusalem
- Investors with a long-term horizon (5ā10 years)
- Diaspora families purchasing with future use in mind, such as Aliyah or retirement
Final Thoughts
Urban renewal is playing a critical role in shaping Jerusalemās future. While projects like TAMA 38 and Pinui Binui can be complex, they also create exciting opportunities ā modern living in a historic city, improved infrastructure, and long-term investment potential.
If you’re considering buying property in Jerusalem, understanding the urban renewal landscape is essential. Work with professionals who know the local market and can guide you through the unique dynamics of these transformative projects.
Need help finding a property in a TAMA 38 or Pinui Binui zone?
Get in touch today for expert guidance on Jerusalemās evolving real estate market.
