Historic First: Urban Renewal in Ma’ale Adumim with 750 Homes

By Dror Nir Castel, Nadlan Center

The Government Authority for Urban Renewal has declared a site in the Klei Shir neighborhood of Ma’ale Adumim as an urban renewal (pinui-binui) area. The Ben David Group project will demolish 147 apartments and build new towers up to 31 floors — a first for the city. A building permit for the project is expected in the coming months. A partner at Ben David Group said: “We are proud to lead the breakthrough in advancing urban renewal in Judea and Samaria.”

The declaration grants both residents and developers the tax benefits stipulated by law, which are essential to making the project feasible, as well as legal recourse regarding “objecting tenants.” This became possible after a December order signed by IDF Central Command head Maj. Gen. Avi Blot applied Israel’s urban renewal laws in Judea and Samaria. Until now, such declarations were based only on a 1999 government decision, since Israeli law did not apply there. Ma’ale Adumim, located east of Jerusalem in the northern Judean Desert, has a population of about 40,000, making it the third-largest city in the region.

Currently, the project area on Keren and HaAsor streets contains two long, four-story buildings with 147 apartments and 17 shops spread over 33 dunams. In their place, seven towers will rise, the tallest at 31 stories, with others at 26 stories, all featuring commercial ground floors. Alongside 750 new apartments, the project will deliver 3,000 square meters of retail space, a public park, new roads, and underground parking. Each resident will receive a 25-square-meter upgrade, a 12-square-meter balcony, a reinforced safe room, a 6-square-meter storage room, and 1.8 parking spaces (including guest parking) — rare in Judea and Samaria. Bitman-Ben Tzur Architects designed the plan.

Ben David Group, a veteran Jerusalem-based family company, has been active in Israeli real estate for decades. It has initiated over 2,000 residential, commercial, and hotel units, including the Davida Towers in downtown Jerusalem, projects in Haifa, and a large-scale renewal project in Armon Hanatziv, Jerusalem.

Yochai Noy, partner and project manager at Ben David Group, explained: “We have pushed this project forward for the past four years with the Urban Renewal Authority and other government bodies. The declaration as a designated renewal site is crucial, as without it, there are no tax exemptions. We love the Land of Israel and the settlements, and while this is not our first project in Judea and Samaria, it is the first urban renewal under the official framework. We are proud to lead this breakthrough.”

Yehuda Morgenstern, Director General of the Ministry of Construction and Housing and Acting CEO of the Urban Renewal Authority, added: “The Authority’s declaration process is a key driver of housing supply in Israel’s core demand areas and now also in the periphery. Renewal of these complexes improves quality of life, upgrades aging infrastructure, and strengthens communities. The Ma’ale Adumim site is already in an advanced stage, close to permit approval, which provides a high degree of certainty for successful completion.”

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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