Tama 38 Projects in Jerusalem: Revitalizing the Capital Through Urban Renewal

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Jerusalem, Israel’s ancient and spiritual capital, is not typically associated with modern high-rises and cutting-edge architecture. Yet beneath its stone façades and centuries-old neighborhoods lies a city in urgent need of structural rejuvenation. Many of Jerusalem’s apartment buildings were constructed between the 1950s and 1970s, a period of rapid population growth following waves of immigration. While these structures fulfilled the basic housing needs of the time, they were built under old construction codes and are now considered both outdated and vulnerable—particularly in the face of seismic activity. In response to this, the Israeli government introduced Tama 38, a national initiative that is now playing a transformative role in renewing Jerusalem’s urban landscape.

What Is Tama 38 and Why Was It Introduced?

Tama 38 (תכנית מתאר ארצית 38) is a national outline plan launched in 2005, originally designed to strengthen buildings that predate the 1980 building code that accounted for earthquake safety. Recognizing that tens of thousands of structures across Israel lacked adequate reinforcement, the plan created a unique public-private partnership: building owners would receive free structural upgrades, and in return, developers would be granted building rights to add floors, balconies, elevators, and sometimes entire new apartments for sale.

There are two main types of Tama 38 projects. The first, Tama 38/1, involves strengthening and renovating the existing building while allowing vertical expansion, usually by adding one to three floors. The second, Tama 38/2, also referred to as the “demolition and rebuild” model, permits the full demolition of the old structure and construction of a brand-new building with more units, adhering to modern safety and design standards. Both models aim to simultaneously improve public safety, renew deteriorating infrastructure, and increase the supply of residential units in high-demand urban areas.

Why Is Tama 38 Especially Important in Jerusalem?

Jerusalem poses a unique set of challenges and opportunities for urban renewal. The city’s historical and religious significance has led to strict preservation laws, meaning that modern construction must be balanced carefully with cultural sensitivity and architectural integrity. At the same time, Jerusalem is located near the Dead Sea Rift, a fault line with significant earthquake risk. The city is long overdue for seismic retrofitting of its vulnerable building stock.

Many of the buildings in Jerusalem’s older neighborhoods were hastily constructed during the early years of statehood to accommodate waves of Jewish immigrants. These structures, made of concrete and often lacking insulation, elevators, and safety reinforcements, are now prime candidates for renewal under the Tama 38 framework. With housing demand far outstripping supply, and land availability being limited in this densely populated city, Tama 38 offers a creative solution to urban growth—leveraging existing land and upgrading the quality of life for residents without displacing communities.

Neighborhoods in Jerusalem Benefiting from Tama 38

Several neighborhoods in Jerusalem have emerged as hotspots for Tama 38 development. Each area presents its own character and benefits, but all share a common feature: a high percentage of aging buildings and strong demand for improved housing.

Katamonim, a working-class neighborhood with excellent access to public transportation and educational institutions, is experiencing rapid transformation. Developers have identified Katamonim as a high-potential area where Tama 38 projects can significantly uplift property values and attract middle-class families. Buildings once considered outdated and unattractive are now being converted into modern residences with balconies, elevators, and underground parking.

Kiryat HaYovel, known for its proximity to Hadassah Ein Kerem hospital and the Jerusalem light rail, is another area where Tama 38 is reshaping the streetscape. Many of its residential blocks are ideal for reinforcement or demolition-rebuild models. The community has also embraced the aesthetic and practical benefits of these projects, especially the addition of safe rooms (Mamad), more spacious living areas, and modern amenities.

Arnona, a prestigious neighborhood that borders Talpiot and the American Consulate area, has also seen high levels of Tama 38 activity. Here, projects are typically geared toward luxury upgrades, with enhanced finishes and expanded penthouses. Given its appeal to foreign buyers and Jerusalem’s upper-middle class, Arnona’s Tama 38 projects tend to deliver both safety and style.

Other neighborhoods like Bayit VeGan, Talpiot Mizrach, and Gilo have also become active hubs for Tama 38 implementation, offering developers ample space for expansion and residents a much-needed quality of life boost.

Benefits of Tama 38 for Apartment Owners

Participating in a Tama 38 project offers substantial advantages to residents—both financially and in terms of quality of life. The most immediate benefit is seismic safety. Reinforced concrete structures and the addition of secure safe rooms greatly increase residents’ protection during emergencies. In addition, many projects include modern upgrades such as new facades, insulated windows, secure building entry systems, and elevators—features that dramatically improve daily living conditions.

Owners often receive expanded living spaces, including new rooms or balconies, at no cost. Parking solutions, storage units, and improved access for the elderly and disabled are also commonly integrated. Property values typically rise by 20% to 40% after project completion, making Tama 38 a financially attractive proposition even for residents with no intention to sell.

An Investor’s Perspective on Tama 38 in Jerusalem

For real estate investors, Tama 38 projects in Jerusalem offer a rare combination of risk-managed development and long-term return potential. Unlike speculative new builds on the periphery, Tama 38 developments are located in established neighborhoods with existing demand, infrastructure, and community life. Investors can enter early by acquiring apartments in older buildings, participating in the redevelopment, and selling at a premium upon completion.

Furthermore, since many Tama 38 projects result in the construction of new apartments for sale, developers and investors alike benefit from pre-approved expansion rights and favorable market conditions. Jerusalem’s housing market has proven resilient even during national downturns, thanks to strong domestic demand, religious tourism, and a sizable international Jewish diaspora.

Challenges and Delays in Jerusalem-Specific Tama 38 Projects

Despite its potential, executing a Tama 38 project in Jerusalem is not without complications. The city’s stringent zoning regulations and historic preservation requirements often extend the planning and approval phases. Buildings located near archaeological zones or religious institutions may face unique restrictions. In some cases, these rules can delay projects for several years or limit the scope of permissible construction.

Another common hurdle is owner resistance. Tama 38 projects require the consent of a majority—or in some cases, a supermajority—of residents. Gaining agreement among multiple families, particularly in culturally diverse buildings, can be a complex and time-consuming task. Some residents may object to the construction noise, fear gentrification, or dispute the financial details.

In addition, temporary relocation may be required during demolition and reconstruction, raising logistical and emotional challenges for long-term tenants. As such, expert legal, architectural, and project management guidance is essential to navigating the maze of permits, incentives, and negotiations.

The Future of Tama 38 in Jerusalem: From Policy to Practice

Although the national government announced the gradual phase-out of Tama 38 by 2026 in favor of broader urban renewal plans, Jerusalem is expected to remain a central stage for these initiatives. The city has committed to continuing its support for seismic retrofitting and urban regeneration through mechanisms like Pinui-Binui (evacuation and rebuild), which builds on the success of Tama 38 while offering larger-scale redevelopment solutions.

Municipal leaders and private developers are increasingly turning to these tools as a way to preserve Jerusalem’s unique character while preparing it for future growth. The challenge will be to strike a balance between modernization and preservation—ensuring that Jerusalem remains both resilient and reflective of its rich heritage.

Conclusion

Tama 38 projects are helping to reshape the face of Jerusalem—safeguarding lives, revitalizing neighborhoods, and modernizing housing stock that has long lagged behind the city’s needs. Whether you’re a homeowner looking to upgrade your property, a tenant in an aging building, or an investor seeking opportunities in a stable and demand-driven market, understanding the nuances of Tama 38 in Jerusalem is critical.

These projects are not just about concrete and steel. They’re about resilience, opportunity, and renewal in one of the world’s most significant cities. As Jerusalem evolves, Tama 38 will continue to be a key chapter in the city's modern story of growth and preservation.