Old buildings under real threat: The real estate crisis threatening Israel

The Jewish National Fund (KKL-JNF) has approved an allocation of 33 million shekels for 2026–2027 to fund detailed planning of urban renewal projects in the periphery, focusing on communities at high seismic risk. The move aims to bridge market gaps and enable the reinforcement of old buildings against the threat of an earthquake.

The Jewish National Fund (KKL-JNF) is entering the field of urban renewal in the periphery, amid concerns over a strong earthquake that could damage old buildings. The KKL-JNF board approved this week a dedicated budget allocation of up to 33 million shekels for 2026–2027, which will be directed at removing barriers in the detailed planning stage. The initiative focuses on communities in national priority areas that have been mapped as having exceptional seismic and structural challenges: Kiryat Shmona, Katzrin, Hatzor HaGlilit, Safed, Tiberias, and Beit She'an. KKL-JNF Chairman Avi Ostrensky stated that in the periphery there are old buildings and a real risk in the event of an earthquake, but the market alone cannot always provide the solution. According to him, KKL-JNF's role is to enter these places, remove barriers, and create conditions that will allow projects to move forward. Ostrensky added that the current step is the first building block in a broader strategic plan. The final budget allocation to municipalities will be determined according to professional criteria and in coordination with local leaders. KKL-JNF explains that the move is also based on an environmental consideration: densifying and renewing the urban fabric allows for addressing population growth and housing demand without encroaching on open spaces.