The Jerusalem District Planning Committee has officially approved the urban renewal plan for the Gilo neighborhood, which will see 81 old apartments demolished and replaced with 383 new units—including 20% designated as small apartments—alongside new commercial space. Thanks to an agreement with Amidar, Dimri has secured the required 80% tenant approval needed to move the project forward.
By Doron Breitman, Nadlan Center
The Jerusalem District Planning Committee recently gave final approval to Y.H. Dimri’s pinui-binui (evacuation-reconstruction) urban renewal plan in the Gilo neighborhood of Jerusalem. The company announced the approval on Thursday morning in a report to the Tel Aviv Stock Exchange. As part of the process, Dimri signed a partnership agreement with the government housing company Amidar, allowing it to secure the required 80% tenant consent for the project.
The project involves demolishing 81 housing units spread across nine old buildings and replacing them with 383 new apartments in four buildings—two of which will be 39 stories tall and two others nine stories tall. As per the plan’s guidelines, at least 20% of the new units must be small apartments, with a maximum size of 75 square meters. The plan also allocates 960 square meters for commercial use. Public buildings totaling around 7,000 square meters will be constructed as part of the project, including three preschools.
The plan covers an area of approximately 11 dunams and is located between Gefen, Yahalom, and Ahlama Streets in the southern Jerusalem neighborhood of Gilo. The plan was prepared by Maoz Price Architects.
An economic feasibility report conducted under Israeli Standard 21 indicates that the expected profit for 377 units in the project is NIS 99.757 million. The projected return on cost is 15.35%, and the return on sales is expected to reach 13.31%. Total project revenue is estimated at NIS 749.566 million.
Meir Baron, Head of Urban Renewal at Y.H. Dimri, stated: “Following the approval of the urban renewal plan in Gilo by the District Committee about a month ago, our flagship project in the neighborhood is now moving into the building permit stage. Cooperation with Amidar, which owns a significant portion of the apartments in the complex, greatly accelerated our progress and brought us to about 80% tenant consent.
“This is a major step toward the implementation of the project, which is expected to offer Gilo residents a modern, secure living environment, integrated into Jerusalem’s new infrastructure. We view Gilo as a key growth area for the city and are working to bring high-level and innovative residential standards to the neighborhood, out of deep commitment to the city and its residents.”
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