Israel Advances Plans to Convert 27,000 Office Spaces Into Housing
Israel's special planning committee is advancing plans for at least 27,000 residential apartments by converting unused office spaces, tackling commercial surpluses and housing demands.
Israel is advancing plans to convert at least 27,000 office spaces into residential apartments through a specialized planning committee, addressing a massive surplus of unused commercial real estate and soaring housing demand. Approximately 7,000 of these apartments are currently under active discussion across ten advanced projects, while an additional potential for roughly 20,000 homes has been identified across 15 early-stage sites.
The Landmark Project in Givat Shmuel
The most mature project, nearing deposit, is located in Givat Shmuel at the Amitech complex owned by the Azrieli Group. Situated along Highway 4 near the Givat Shmuel interchange and opposite the Coca-Cola factory, the initiative involves building two 32-story towers containing 400 apartments above five stories of commercial and office space. This replaces an older plan approved years ago for 52,000 square meters of offices that the group never utilized.
"The major advantage of working with the special committee is the ability to generate cooperation and coordinate the process across all relevant bodies, such as the National Infrastructure Committee, the local authority, and Netivei Israel, thereby achieving an optimal planning framework," said Avi Buchshreiber, CEO of the Azrieli Group.
Overcoming Municipal Resistance and Bureaucracy
Established following a law passed in January 2022, the temporary subcommittee (VATMAG) initially faced severe stagnation as mayors fiercely opposed commercial-to-residential conversions out of fear that lucrative municipal property taxes (arnona) would shrink. However, a recent organizational overhaul led by Sigi Bari, head of the urban planning division, transformed the committee into a proactive body focusing on strategic, large-scale complexes near public transit infrastructure.
As a result of its extended mandate through the end of 2029, the committee is now empowered to convert commercial plots into housing as well, marking a major turning point for Israel's urban real estate market.
