The importance of the projects in city centers and periphery plan 38, is primarily social. The obvious government action is significant and deeply cut tax on enterprises.

Construction Site. (Photo: Jonathan Zindel, Flash 90)


A solution to the housing crisis will not come from one direction. A real change in the housing market must be comprehensive and profound influence on all fronts faced by homebuyers, contractors and developers. If the Israeli government has not spread and lowers the construction process, not decreased prices. It starts taxation, sometimes taking up about a third to half the value of the property even, and continues during the long wait for building permits in Israel.

The two national plans had to be the spearhead of Israeli real estate: TMA 38 and evacuation / Construction. These two are a real revival of city centers in Israel, both in the center and the periphery. Was possible to get an extra thousand new housing units to benefit the old owners and strengthen the infrastructure of the old and dangerous buildings.

Consideration of the two is not only in increasing the housing supply but, and especially the social processes inherent in them. You can not overstate the importance of the oldest areas in the city centers. Cities are measured primarily through neighborhoods founder and veteran center, which is in the main center of employment or commercial, residential side. These programs also contribute to the possibility of the city to continue to live near their parents, and thus give the generational continuity.

The overall goal of the plan 38 as well as gentrification is download the urban renewal responsibility from the shoulders of the state and bring it to the developers and owners, by making those economic feasibility for all parties. Governments so far have given the ease with VAT and increasing the building rights, but reality shows that it is not enough. In order to expand the number of projects, particularly in the periphery, there is deepening the tax benefits to Slizmim be worthwhile to carry out urban renewal in cities that are the center of the metropolis.

Tama 38 and gentrification actually both net sales for the apartment owners, entrepreneur significant contrast entitled to relief in taxation, law bypass route gentrification, and reduce the discretion of the planning authorities regarding additional building rights.

Tama 38 means strengthening the existing structure, building renovation shared infrastructure – sewer, water, electricity, and adding new construction on new construction. The consideration of this case are the owners of apartments derivative financial aspect of the transaction and the planning aspect. As for gentrification, this is a complete demolition of the old building and build a completely new building area is defined, this deal is much more expensive, but also changes the developer grow accordingly – otherwise there is no programming.

Which is better, and to whom?

When considering the pros and cons of the plan 38 and gentrification index is tested first tenants comfort. Here we have a great advantage gentrification, compared plan 38. gentrification, tenants of the building are transferred to alternative accommodation for project execution time. These can be a residential apartment or even a hotel room, where the contractor bears the costs of alternative housing. In this way, tenants should not suffer the renovation noise, dust, cutting off electricity and water and the like.

“קיים ורק מחכה לעידוד התוצאה”, יצחק מויאל. צילום: יח”צ Another advantage gentrification is receiving a new property entirely.As part of gentrification get tenants, rather than their old apartment, completely new apartment, a new building. For the most part, each tenant gets a bigger apartment old apartment that was in his possession. In this way, each resident also enjoy a better quality of life and significant increase in the value of the property he owns.

But there are many measures which the benefits of the plan 38 exceed those of gentrification. First the number of apartments that are added to the project. Since the project of gentrification are built at least 18 new housing units, the number of building occupants has increased significantly. Who cared about privacy is important to him, he likes to live in a townhouse with a small number of tenants, likely to prefer a project plan 38, which added a lot less common to new tenants.Another point is the time of project implementation, which is much longer gentrification plan 38. If the project work plan 38 may take about six months to a year, the gentrification comes to about a year and a half to two years from the date of receipt of construction permits. The final consideration is the contractor and its feasibility concerns in the project. In many cases you can not make gentrification, that the contractor does not pay to do so. Many contractors consider to make a gentrification project only if will realize that they can build between 2.5 to three new apartments on each apartment there. However, since the project plan 38 involves far less costs on the part of the contractor, then this is a more practical solution, much more condominiums can enjoy it.

Israel is waiting for a solution, and in this case the solution already exists and is just waiting to encourage government. If the government wants to prove seriousness and intent, it must encourage the implementation of projects throughout the country while reducing costs through taxes and bureaucracy.

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Yitzhak Moyal-chairman of the Federation of Construction Workers and tree