South Tel Aviv is Renewing: How Urban Renewal Projects Are Reshaping the City
Over the past decade, South Tel Aviv has been undergoing a quiet yet profound transformation. Neighborhoods once considered neglected are gradually becoming sought-after destinations, thanks largely to urban renewal and redevelopment projects that raise the standard of living and reshape the streetscape. What was once an old block with crumbling infrastructure is now turning into modern towers with underground parking, elevators, balconies, and thoughtfully planned public spaces.
What exactly is “Pinui-Binui” (Evacuation and Reconstruction)?
“Pinui-Binui” is a project in which residents of an old building are temporarily relocated, the building is demolished, and a new, modern, multi-story project is constructed in its place. As part of the process, apartment owners receive a new, larger apartment in the new building, and sometimes additional benefits such as parking, storage, and a balcony. At the same time, the developer sells additional units in the project, allowing them to finance the construction costs and make a profit.
In South Tel Aviv, this process has become the main growth engine of the real estate market. Neighborhoods like Neve Sha’anan, Shapira, and Yad Eliyahu are already seeing results, while Florentin and Kiryat Shalom are entering a wave of new projects.
The Impact on Property Values
When an old building is replaced with a new project, property values in the area soar. Not only are the new apartments worth more, but surrounding properties also benefit from the upgrade. An older apartment near a new project becomes more attractive to renters and buyers, as the entire street is revitalized.
For example, in the Shapira neighborhood, property prices have risen by tens of percent in recent years, partly due to developers entering Pinui-Binui projects. This trend is expected to continue as more projects reach the occupancy stage.
Renewal of Infrastructure and Public Spaces
Pinui-Binui doesn’t focus only on the buildings themselves. In most cases, the municipality requires developers to invest in public infrastructure as well: new sidewalks, lighting, green spaces, and sometimes even schools and kindergartens. This means South Tel Aviv gains an added value of quality of life that didn’t exist before. Streets become brighter, more organized, and safer – attracting young families and enhancing the living experience.
Benefits for Investors
For real estate investors, Pinui-Binui offers a prime opportunity. Purchasing an apartment in an old building slated for a project can generate particularly high returns once construction is completed. While there is a waiting period until the process is finished, the financial potential is far greater compared to properties in their current condition.
Additionally, some investors choose to purchase new apartments within the projects themselves, understanding that the entire neighborhood is on the rise and that demand for both rental and resale will only grow in the coming years.
The Challenge: Not Every Project Gets Off the Ground
Despite all the opportunities, it’s important to remember that not every Pinui-Binui project actually comes to fruition. Sometimes there are objections from residents, financial difficulties on the part of developers, or delays in municipal approvals. That’s why it’s crucial to identify serious projects and carefully assess the developer, the planning stage, and the timelines.
In Summary: The Future of South Tel Aviv Lies in Renewal
Pinui-Binui projects in South Tel Aviv are not just isolated cases but a trend that will impact the entire city. They improve the quality of life, increase property values, and create new neighborhoods that attract young residents and families.
At Nadlansky, we guide buyers, investors, and renters precisely at these points: finding the right opportunities, identifying projects with the highest potential, and making smart deals in South Tel Aviv. Whether you’re looking for a home, an investment property, or a rental solution, we’re here to make the process simple, professional, and profitable.
