Tel Aviv set to approve 5,000 new homes for city center

The building plan for central Tel Aviv, which will add thousands of new apartments to the city, is nearing approval. The Tel Aviv-Yafo Municipality has decided not to oppose the cancellation of the rights restriction in rova’im (quarters) 5 and 6, and the plan is expected to move on to final approval. The municipality still has a list of other objections to the District Committee’s latest decisions, but these are not expected to be dramatic or to delay the plan’s approval.

The Tel Aviv-Yafo Municipality estimated that the original plan, as submitted to the District Committee before the latest amendments, was expected to add 4,200 new apartments to these quarters. Now, with the removal of the building rights restriction, estimates that the number of apartments will increase by 20%.

More than a decade of discussions

The plan for rova’im 5 and 6 extends covers 1,680 dunams (420 acres) in the city center. The historic area of rova 5, most of which is included in the UNESCO World Heritage Site (the White City), is between the sea and Yehuda Halevi Street, Menachem Begin Street, Carlebach Street, Jaffa Street, Eilat Street, Marmorek, Ben Zion Boulevard and Bograshov Street. Rova 6 to the east is between Shaul Hamelech Boulevard, Netivei Ayalon, HaRaveket Street, Carlebach and Menachem Begin Streets.

The plan has been in the planning pipeline for many years, and in fact, discussions began in 2014, with the announcement of the preparation of the plan and with restrictions on issuing building permits, according to sections 77 and 78 of the Planning and Building Law. The plan was only submitted in December 2022 by the local Planning and Building Committee, and in December 2025, it was submitted to the District Committee. Three months ago, the District Committee, after hearing objections, published a series of amendments, one of which was particularly dramatic: the cancellation of the construction percentage limit specified in the plan.

The assessment was that the municipality would oppose this decision, since the district committee is effectively forcing the municipality to increase the building rights in the plan, even though these are limited, due to the strict conservation provisions in the White City district. However, in detailing the objections brought to the local committee for discussion this week, the municipality said that it would not oppose the increase in rights. The increased rights was the most significant of the new decisions made by the District Committee, and so opposition in the current “round” of discussions will be more minor, which paves the way for the plan to be approved in the near future.

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“The scope of rights will change”

The plan for rova’im 5 and 6 is the third plan of its kind in Tel Aviv-Yafo to be approved, after rova’im 3 and 4 were approved a few years ago, allowing major development, especially in rova 4. With the approval of this plan, the beginning of major development in the heart of the city will be possible.

Land appraiser and lawyer Erez Cohen says, “The District Committee did not completely remove building restrictions, of course that cannot happen. But the mere removal of the original building restrictions is expected to greatly assist in the implementation of the plans in these areas.”

“In my assessment, even in rova’im 5 and 6, where possible, there is justification for the decision not to remain within the limits (Amendment 139). Even before the restriction was removed, the building rights granted by the plan were more than 300,000 square meters, and now there will be more. I assume that the municipality estimates that with the previous restrictions, another 20% of apartments can be added following the removal of the restrictions, which is an addition of hundreds of apartments. This is a decision that changes the scope of the rights in the plan from end to end.”

This provides potential for increasing the supply of apartments in a challenging period. In recent years, Tel Aviv has been dealing with major slowdown in the pace of apartment sales. The “stock” of unsold apartments in the city is currently at record levels, around 10,000 new unsold apartments over the past few months. The addition of new apartments in rova’im 5 and 6 will escalate the challenge and may increase the unsold stock.

Decision expected soon

The Tel Aviv Municipality’s decision not to oppose the cancellation of the rights restriction is significant, but it has filed objections to 36 sections in the District Committee decision. Among other things, the municipality requests that the parking standard for homes not be less than 0.5 (parking for every 2 units) and wants that in the “heart of the city” the number of floors will be six plus an attic floor, instead of 6.5 floors. These are minor objections, which will not delay approval of the plan.

Published by Globes, Israel business news – en.globes.co.il – on May 28, 2026.

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