E1 History: From the Alon Plan in 1994 to the 2026 Tenders

E1 History: The Long Road That Hasn't Ended Until Now

Anyone following the new construction tenders in the E1 area today might think it's a relatively new plan. The truth is far from that: E1's history spans more than three decades, starting in the early 1990s, and is filled with repeated delays. To truly understand the significance of the current moment – the tender for 1,234 housing units published in August 2026 – it's worth getting to know the whole road that led here.

The Beginning: The Alon Plan in the 1990s

The roots of the E1 plan lie in a plan known as the "Alon Plan," formulated back in the 1990s as part of a planning vision seeking to create geographic-urban continuity between Jerusalem and Ma'ale Adumim. The central idea was simple: connect the capital to its large eastern suburb through a construction area that creates an urban "ring" around Jerusalem, strengthening its status as a unified capital with settlement continuity.

Decades of Standstill

Despite the clear vision, the plan was delayed again and again over nearly three decades. Over the years, political factors and international pressure led to repeated freezes in planning progress, with the plan being halted anew each time it seemed about to move forward. Without dwelling on the political controversy surrounding the issue, the relevant fact for anyone interested in real estate is that the plan never disappeared from the agenda – it was simply waiting for the right window of opportunity.

The Condensed Timeline

Why This Time Is Different

What distinguishes the current period is that the process is not based on a single announcement, but on a series of tangible, documented steps: official planning approval, a signed budgetary agreement, and construction tenders released one after another. This is a fundamental difference compared to the past, when many planning declarations never translated into action. This time, each stage builds on the previous one – lending the process far greater weight and credibility.

What This Says About Confidence in the Project

The long history of delays is exactly why the current pace of progress is so significant. Anyone familiar with the background understands that the transition from a planning tender to an actual construction tender, followed by the start of infrastructure work expected in 2026-2027, represents a real change in the project's status – no longer just another temporary stage, but sustained momentum backed by budget and full regulatory infrastructure.

A Lesson From the Past for Today's Investors

The three decades of delays teach an important lesson: projects involving long-term planning-political processes tend to "explode" demand all at once the moment they pass the final approval line, since the supply that accumulated during the waiting period meets decades of pent-up demand. Anyone entering the area at the stage where the facts are already on the ground – planning approval, a budgetary agreement, and construction tenders – but actual development is still in its infancy, may be in the best possible position in terms of timing.

Continue Reading – Everything You Need to Know

For further reading, we recommend also looking at the historic tender launched after 30 years, at the urban continuity between Jerusalem and Ma'ale Adumim, and at the Alon Plan and the Zionist-settlement significance of E1. For an up-to-date picture of real estate in the area, also visit the Ma'ale Adumim page and the current listings of apartments for sale in the city.

Want to Understand the Full Picture?

Merkaz HaNechasim Ma'ale Adumim knows the historical background of the E1 project in depth, and can help you understand the opportunity now opening up. Visit the full project page and contact us for free, personal advice.