Tel Aviv center is being renewed with thousands of apartments, and this time the municipality ensured a hefty betterment levy
The renewal plan for quarters 5 and 6 in central Tel Aviv will allow the construction of approximately 14,000 new apartments and generate billions of shekels for the municipality from betterment levies, mainly upon the sale of apartments. The plan is based on the Shaked alternative and provides only partial protection against levies, unlike previous plans.
The urban renewal plan for quarters 5 and 6 in central Tel Aviv is expected to add thousands of new apartments and enrich the municipal coffers by billions of shekels from betterment levies imposed on apartment sales. The plan spans 1,686 dunams from the seashore to the Ayalon Highway, including Rothschild, Allenby, Ben Yehuda, and other streets. Currently, there are about 21,600 housing units in the area; the plan will allow the construction of approximately 14,000 additional units, although full implementation is expected to take decades. Unlike previous plans in quarters 3 and 4, this plan is based on the Shaked alternative, which allows the municipality to collect a betterment levy of 50% upon the sale of an apartment and 25% upon receiving a building permit. Appraiser Danny Tarshansky estimates that apartment owners will pay hundreds of thousands of shekels upon sale. The plan does not apply to preserved buildings or plots with existing approved plans.