Demolish-and-Rebuild in Beit Shemesh 2026 – The Guide for Residents and Investors

Beit Shemesh, like many other cities in Israel, is undergoing a wave of urban renewal. Demolish-and-rebuild projects and TAMA 38 have become a hot topic in 2026, with older neighborhoods like Beit Shemesh A and Beit Shemesh B in advanced planning stages.

What is Demolish-and-Rebuild?

Demolish-and-rebuild is a process where old buildings are demolished and replaced with new, modern buildings. Existing residents receive a larger new apartment, and sometimes also rental compensation during the construction period.

What do residents receive in a Demolish-and-Rebuild project?

• A larger new apartment (usually an addition of 20–30 square meters)
• A balcony and/or parking
• Funding for alternative rent during the construction period
• Exemption from capital-gains tax on the received apartment

Which neighborhoods in Beit Shemesh are suitable for Demolish-and-Rebuild?

The older neighborhoods of Beit Shemesh (A and B) with buildings from the 1960s and 1970s are the best candidates for demolish-and-rebuild. The low height of the buildings, the unused rights, and the central location make them attractive to developers.

How to start the Demolish-and-Rebuild process?

80% of the building's residents must agree to the project. After that, the developer submits a plan to the local planning committee and begins the licensing process.

For more information about properties in Beit Shemesh: View all properties in Beit Shemesh.

Important Warning

Before signing any document with a demolish-and-rebuild developer, it is highly recommended to consult with an attorney specializing in urban renewal.