New TAMA 38 Projects in Jerusalem:

What is TAMA 38?

National Outline Plan 38, commonly known as TAMA 38, is a government initiative aimed at strengthening older buildings against earthquakes while simultaneously improving urban infrastructure. The program incentivizes apartment owners to enhance their buildings by providing additional construction rights and tax benefits. TAMA 38 is one of the most popular urban renewal programs in Israel, benefiting both property owners and developers.

Where Can I Find TAMA 38 Projects in Jerusalem?

TAMA 38 projects can be found in various neighborhoods across Jerusalem, including Baka, Arnona, Talbiya, Rechavia, German Colony, North Talpiot, City Center, Old Katamon, and Ramat Eshkol. Some streets have seen multiple TAMA 38 projects, demonstrating the program’s popularity.

Here is a list of buildings in Jerusalem that have undergone TAMA 38 or have the potential for it, meaning the process has started. However, we recommend verifying each specific address, as we cannot guarantee that the project will be completed in all cases.:

Baka:

• Gideon 15
• Yiftach 2
• Ben Yefune 10
• Reuven 14
• Efraim 8

Caspi Street (TAMA 38 Projects):

• Mordechai Caspi 1
• Mordechai Caspi 2
• Mordechai Caspi 6
• Mordechai Caspi 8

German Colony:

• Dides 6
• Hatzfira 3
• Yehoshua Bin Nun 28
• Yotam 7

Old Katamon:

• Tel Chai 3
• Hagadna 5
• HaTayasim 36

Ramat Eshkol:

• Mevo Tzalmona 1
• Ramat Hagolan 1, 2, 44, 48
• Mishmar Hagvul 7

How to Check If a Building is Approved for TAMA 38

The status of TAMA 38 applications is public information. If you are interested in finding out whether a building is under consideration for TAMA 38, has received approval, or is in the permit application process, you can check through the Jerusalem Municipality’s online systems. At JRE, we have experts who can help navigate this process and provide you with the latest updates on TAMA 38 projects across Jerusalem.

The Two Tracks of TAMA 38

There are two main tracks under TAMA 38:

1. TAMA 38/1: Strengthening and Reinforcement
   • The building remains intact while its foundations and structure are reinforced and additional floors and apartments are constructed.
   • Existing apartments are often expanded to include a secure room (Mamad) and balconies.
2. TAMA 38/2: Demolition and Reconstruction
   • The old building is completely demolished and a new, modern structure is built in its place.
   • This track is often preferred as it provides a complete upgrade to the building.

Why is TAMA 38 So Popular?

TAMA 38 is a win-win scenario for multiple parties:

1. Apartment Owners: They receive larger apartments with additional space, a balcony, a secure room, an elevator, improved infrastructure, and often private parking.
2. Developers: They are able to build additional floors and sell new apartments at high prices, making a good profit.
3. Municipality of Jerusalem: The city benefits from higher property taxes (Arnona), improved safety, and an overall modernized urban landscape.
4. Government: The government ensures better earthquake resilience for buildings, increased tax revenues, and helps accommodate the rising demand for housing, particularly for new immigrants (Olim).

Why Do Some Tenants Object to TAMA 38?

While TAMA 38 provides many benefits, some tenants may oppose the program for various reasons:

• Elderly residents who are resistant to change and prefer stability.
• Recently renovated apartments where owners feel they won’t benefit from additional upgrades.
• Garden apartments where residents have enjoyed exclusive use of a large garden, which may be lost due to the construction project.
• Absentee owners who live abroad and do not want to deal with the complications of construction.

Investment Opportunities in TAMA 38

TAMA 38 has created a range of investment opportunities in Jerusalem. Many investors seek properties in buildings undergoing TAMA 38 because they can purchase an older apartment at a lower price and benefit from an upgraded property in the future. This has made the program highly attractive for real estate investment in the city.

Conclusion

TAMA 38 has been a resounding success in Jerusalem and throughout Israel. It modernizes the city, improves safety, and offers attractive opportunities for both homeowners and investors. If you are interested in learning more about TAMA 38 projects in Jerusalem or investing in a TAMA 38 property, the JRE team is here to help. Before making a purchasing decision, be sure to check the specific property through proper due diligence.

Contact us today to explore your options and make informed real estate decisions.