TAMA 38 & Pinui-Binui: An Urban-Renewal Guide for Real-Estate Professionals

What is TAMA 38, and what happened to it?

TAMA 38 is a national outline plan (Tochnit Metar Artzit) designed to reinforce old buildings against earthquakes, granting the developer building incentives in return for the work. Two tracks were defined:

• TAMA 38/1 (reinforcement) — the existing building remains and is reinforced, with added housing units, protected rooms (mamad), balconies, an elevator and sometimes parking. Residents usually do not vacate their apartments permanently.
• TAMA 38/2 (demolition and rebuild) — the building is demolished and a new one is built in its place. Residents are evacuated for the construction period and receive a new apartment.

A key point to update on: the National Planning and Building Council decided not to extend TAMA 38, and the plan closed to new applications around October 2022. Projects that already held a valid permit (or met the transitional provisions) continue, but it can no longer be relied on as an open track for new properties. Its place is being taken mainly by local plans promoted by the municipalities and by the pinui-binui track. So when valuing a property with "TAMA 38 potential," it's important to verify the current planning status and not assume the track is still available.

Pinui-binui — the central arena of renewal today

With TAMA 38 closed to new applications, pinui-binui became the central renewal track. Unlike TAMA 38, which handled a single building, pinui-binui operates on the scale of an entire compound: several adjacent buildings are evacuated and demolished, and a large area is re-planned, usually with a substantial increase in the number of housing units and an upgrade to infrastructure, roads and public spaces. The process runs under its own legal framework and the oversight of the Government Authority for Urban Renewal.

The deal model in brief: a developer receives increased building rights in the compound, and in return builds the existing owners a new apartment (usually larger and in a new building) and covers the moving and rental costs during construction. The developer's profit comes from the additional apartments sold on the market. So the project's viability depends directly on the ratio between the added rights and sale prices in the area — in high-demand areas the equation closes more easily.

Process stages (broadly): declaration of the compound → statutory planning and plan approval (TABA) → developer selection and agreement → obtaining building permits → resident evacuation and construction → re-occupancy. Each stage can take a long time, and the whole process is usually measured in many years. It requires a qualified majority of owner consent in the compound — the required majority threshold has changed over the years in legislation, so the current bar should be checked.

The main differences vs. TAMA 38:

• Scope — an entire compound (pinui-binui) vs. a single building (TAMA 38).
• Status — pinui-binui is an active, central track; TAMA 38 is closed to new applications.
• Timeline — pinui-binui is usually longer; the realization horizon is measured in many years and sometimes over a decade.
• Potential and risk — higher density and value uplift, alongside higher risk and time.

How many declared pinui-binui compounds are in each city? (government data)

According to the Government Authority for Urban Renewal (Ministry of Construction & Housing), roughly 976 pinui-binui compounds are declared in Israel. Here are two cross-sections for the core cities — an official figure that does not depend on specific listings:

Total declared compounds (any stage)

Of those — in the realization stage (approved & under construction)

The gap between the two charts is the key point: every city has dozens of declared compounds, but only a few are in the advanced realization stage — all the rest are in planning and approval. This illustrates just how long the pinui-binui realization horizon is, and that a declaration of a compound is no guarantee of construction in the foreseeable future.

How does renewal affect a property's value?

Renewal potential is an economic asset in itself, and it is already priced in — fully or partly — in the price of old apartments in high-demand areas. The closer the project is to certain realization, the higher the potential premium; the more distant or speculative it is, the smaller the premium and the more it reflects risk. It's customary to separate the current value of the apartment as-is from the value of the future rights, and weigh each layer separately. To go deeper on valuation and on weighing time and risk into the price, see the pricing guide.

What signals make up a renewal-potential assessment?

A potential assessment rests on a systematic check of several axes, not on a single rumor:

• Status — whether the compound has been declared, and what planning stage it's in.
• Rights — the approved and potential scope of rights under the plans.
• Economic feasibility — the ratio between construction cost and expected sale value, which determines whether the project is worthwhile for the developer. In high-demand areas the equation closes more easily.
• Organization — an active resident core, representation and an accompanying lawyer.
• Precedents — similar projects realized nearby.

What are the risks and warning signs?

Alongside the opportunity, urban renewal carries risks. The most prominent is time risk: many projects run years beyond expectations and sometimes get stuck. Presenting a property as "heading toward pinui-binui" when the process is in its infancy presents the risk only partially.

• Resident opposition or lack of a sufficient majority to advance.
• No signed developer, or a developer without financial strength.
• Borderline economic feasibility that may delay the project.
• Reliance on a track (such as TAMA 38) that is no longer open to new applications.
• Gaps between the marketing presentation and the actual planning status.

What is typically checked in official sources?

The check rests on official sources rather than rumors: whether the address sits inside a declared pinui-binui compound, what the planning situation is (which plans apply and what approval stage they're at), and the scope of rights. Official sources to dig into:

• Government Authority for Urban Renewal (gov.il) — policy, compounds and renewal information.
• nadlan.gov.il — official real-estate transaction data (Tax Authority).

How does SHUSHU Pro help identify renewal potential?

SHUSHU Pro shows an urban-renewal status indication on the property, based on the same open government data — including declared pinui-binui compounds. Instead of checking each address manually against several databases, you can see the indication as part of the property information and focus your in-depth check. The full official check is still required, but the starting point is faster and more organized.

Bottom line: TAMA 38 is no longer an open track for new applications, and the central arena today is pinui-binui and local plans. Separating the property's current value from the value of the future rights, alongside verifying status in government sources, is the basis for an accurate assessment.

This guide is general professional information only and is not advice, a recommendation or a substitute for a case-by-case review and consultation with a qualified professional. Verify the details with the official sources before making decisions.