Planning challenges in Jerusalem: Why the light rail policy and tower development are key to balancing the city’s diverse populations

In a recent episode of Nadlan Center’s “Urban Front” podcast, Shira Talmi Babay, Chair of the Jerusalem District Planning and Building Committee, discussed the intricate planning challenges facing one of the world’s most complex cities. In her conversation with Nimrod Bosso, editor at Nadlan Center, she explained the rationale behind the city’s light rail policy, which includes plans for hundreds of towers. She addressed the delicate dynamics between the various populations in Jerusalem. “A third of the productive population has migrated from the city in recent years, but we need them more than ever to stabilize its identity as a global city rather than an isolated one,” she emphasized.

Listen to the podcast episode

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Talmi Babay shared her personal journey, recalling her childhood in Acre—a vibrant but struggling development town. “When I moved to study in Jerusalem, I knew I wouldn’t return, which is very sad,” she said. “I fell in love with Jerusalem and eventually with the man who would become my husband. I pursued my bachelor’s and master’s degrees while working in the Planning Administration and eventually served as Deputy Planner and District Planner. I’ve been chairing the Jerusalem District Committee for the past two years and two months.”

“When I took on the city, I was told that no more land was available. The north, south, and east are blocked due to the city’s geographical boundaries. Attempts to expand westward met resistance from environmental organizations, rightly so. Thus, we must focus on building inward. Jerusalem’s destiny is to remain a world city, and its charm lies in stabilizing its fabric: one-third Arab, one-third ultra-Orthodox, and one-third productive. Navigating the relationships among these groups is delicate yet vital.”

“Those who were quick to leave the city when there were no apartments were precisely the productive third. The city needs them more than anything to stabilize its economy and its character as an international city and a world city, not an isolated city. Living in Jerusalem is not simple; in my eyes, it’s a magical event. My children think so, too, at least three out of four. Living in this city is a great privilege, but it’s tough with its pressures. You encounter the conflict at every corner — in the supermarket, on the train. It’s not simple for everyone, and the Jerusalem brand for the secular population is less exciting. But when there are no housing units, housing becomes more expensive, and the sought-after neighborhoods fail to generate renewal or new land; then there’s a problem.”

“To address these challenges, we developed the light rail policy, which the Tel Aviv and Central Districts have since adopted. Our experience with the functioning train in Jerusalem reinforced our belief that the city should be built around these transit lines. Currently, we have four approved lines under development. By ensuring accessibility and expanding our construction approach—beyond just skyscrapers to contextual buildings with functional facades—we have 480 towers in various planning stages: 80 for employment and approximately 400 for residential use.”

The project fell victim to political chaos

In many ways, you are changing the skyline of one of the oldest and holiest cities in the world and changing its DNA into a city of towers.

Addressing the concerns about altering the skyline of one of the oldest cities in the world, Talmi Babay reassured listeners, “The light rail policy is carefully structured; we aren’t transforming Jerusalem into a city of towers indiscriminately. Strict parameters guide our planning. For instance, in Emek Refaim, a historic neighborhood, the directive limits construction to three floors with gabled roofs. We greatly respect the heart of this city—the Old City and its historic areas.”

“To address these challenges, we developed the light rail policy, which the Tel Aviv and Central Districts have since adopted. Our experience with the functioning train in Jerusalem reinforced our belief that the city should be built around these transit lines. Currently, we have four approved lines under development. By ensuring accessibility and expanding our construction approach—beyond just skyscrapers to contextual buildings with functional facades—we have 480 towers in various planning stages: 80 for employment and approximately 400 for residential use.”

“Conversely, it’s a huge city, and we must understand that. The distances are vast, and the renewal focuses on more distant satellite neighborhoods like Kiryat Yovel, Katamonim, Gilo, and Armon Hanatziv. There are almost no preservation-worthy buildings there, as they are newer. For the historical areas, we maintain a historical plan. But the city will weaken if we don’t know how to renew the more distant areas. In these balances, I think we are doing well.”

She expressed her frustration over the backlash regarding the controversial “Burj Khalifa of Jerusalem” a towering project near Mount Herzl and Yad Vashem. “This project was lost to political chaos. It pains me that this frenzy overshadowed something so important to me. Mount Herzl is as sacred to me as the Western Wall. I’m saddened by how this has unfolded, but this is my professional truth. The fact remains, Mount Herzl has lifted its objection, confirming the project poses no harm.”

“This line will feature numerous towers and be developed as a strong corridor. Some towers are already permitted and under construction near the train stations. The wisdom of this policy is to build along the city’s edge, preserving the natural landscape. Residents will enjoy views of the forests from their homes, ensuring ecological continuity is maintained.”

Is there demand for all the towers being built in the city?

“Alongside the residential construction boom, there is a surge in employment-related projects, public spaces, and light railways. The city aims to become both connected and attractive. While government offices will play a role in this development, other sectors will also be involved. If everything comes together, the city can expect significant demand, which is already evident. I believe it will also address international demand, moving away from ghost apartments, a trend I think has reached its limit.”

“The vision is clear: residents can live along the light rail route or in revitalized neighborhoods, hopping on a train and reaching their workplace in just 13 minutes. This will allow families to save on transportation costs and enjoy a connected, vibrant city.”

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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