Urban renewal has become one of the central issues in Israeli real estate, with complex challenges combining bureaucracy, regulations, infrastructure, and the changing needs of diverse populations.
On one hand, mayors seek control over urban planning and are dealing with rapid population growth and economic pressures. On the other hand, developers are struggling with stringent bureaucracy and changing demands, while residents wonder how these projects will affect their quality of life.
An insightful response to these questions was given on March 19 at the ZOA House in Tel Aviv, during a significant event that looked toward the region’s future, organized by Real Estate Media and moderated by real estate editor and commentator Ofer Petersburg. The event brought together mayors from the Sharon region, senior real estate figures, developers, and professionals who tackled burning questions in the industry.
"We must be realistic – housing prices won’t always rise"
"Urban renewal is not just about construction – it’s about creating a better future for the residents of Israel,” Petersburg announced. “Our role in this event is to bring together the public, developers, and mayors to ensure that these projects are implemented in the best possible way."
Yanki Quint, head of the Israel Land Authority (ILA), stated in a one-on-one conversation with Petersburg: "We provide benefits for all those serving in the reserves" emphasizing that the ILA is marketing land in the periphery at subsidized prices. He updated that land prices have decreased by 10%, but due to the high supply, there hasn’t been a similar decrease in housing prices.
"Mayors need to manage their cities"
The first panel of the conference focused heavily on the struggle between local authorities and the district committee. Attorney Ziv Kaspi, founding partner at Gindi Kaspi & Co. who moderated the first panel, argued that "mayors need to manage their cities without regional interference."
Rafi Saar, mayor of Kfar Saba, emphasized the gaps between urban planning and district planning: "We invest years in planning, and then the Interior Ministry decides to change things at the last minute."
Chaim Broida, mayor of Ra’anana, warned of the collapse of local authorities: "The district committee forces us to absorb thousands of residents without proper infrastructure."
Raz Sagi, mayor of Rosh Ha'ayin, mentioned that "important plans are stuck due to a lack of complementary land and heavy regulation."
Yaakov Nitzan, CEO and partner at Ruby Capital, noted that the lack of coordination between the state and local authorities is delaying construction: "We marketed 65,000 housing units, but only 30,000 permits were issued – we need to close this gap."
Gili Feiglin-Brands, VP of urban renewal at Tzemach Hamarman, emphasized the need for housing solutions for young people: "Cities must allow the construction of small apartments at reasonable prices."
Ariel Pokotinsky, CEO of EcoWall, warned about the quality of construction: "We see more high-rise buildings, but without an emphasis on quality of life. Dampness, mold, and insulation issues are a result of lack of supervision."
Mega-communities and Urban Renewal
The second panel at the conference focused on new neighborhoods being built in the Sharon cities, alongside comprehensive urban renewal plans that are attracting new, young populations. Moderator Attorney Yaron Tikotzky argued that "the heart of the cities is the right place for high-rise construction. Mayors agreed that urban renewal is a fact – now we only need to implement it correctly, balancing urban development with preserving quality of life."
Nir Ben Chaim, mayor of Hadera, described the construction boom in the city: "We are signing agreements with developers to build 4,500 new housing units."
Itzik Rochberger, mayor of Ramat Hasharon, spoke about the district committee’s opposition to the city’s plans: "Developers are our partners, not our enemies – we must give them certainty."
Roy Fadlon, co-CEO of Shponder-Fadlon, called for easing regulation: "If we allow architects to sign permits, it could break bureaucratic barriers."
Tal Kedar, CEO of Kedar Buildings, pointed to the need for advanced technology: "Artificial intelligence can make the real estate market more efficient – it’s time to adopt innovative thinking."
Asher Alon, CEO of the Ashley-Liran Group, called for regulatory changes in urban renewal: "To make projects financially viable, we need to allow higher construction and not limit returns."
Albert Tayeb, mayor of Kfar Yona, mentioned that the city is expanding with 15,000 new housing units and concluded the conference by saying that: "We need to embrace the developers – that’s what will build our country."
