Pinui Binui – The strategic solution for the housing problem in Israel for years to come

Residents take responsibility, unite and choose a management company, and so change their lives.

Residents Take Responsibility

The housing shortage issue has been at the top of the public agenda for about 4 years. The strongest expression of this was the “Tents Protest”, which took over Israel by storm with tents filling Rothschild Boulevard and dozens of locations throughout the country. Many citizens cannot afford to buy their first apartment at an affordable price, and others cannot renovate and improve their housing. Many residents who live in small apartments in old buildings and complexes dating from the 50’s through the early 80’s want to upgrade the quality of their housing, live in a more innovative building with a larger living space, and reinforce the building against damage caused by earthquakes.

After the protest, the residents understood that they are land owners and that they must demonstrate responsibility, foresee the future, unite together, and turn to companies that specialize in urban renewal, clearing and development programs such as 38/2 and Tama 38. The residents became involved in planning, negotiation, initiation, funding and implementation, in order to improve the quality and standard of living. Of course, if you can improve without paying a fortune for it – all the better.

Residents are no longer passive about their future

Residents realize that they are landowners and that the municipality and relevant government ministries are supposed to provide them with services. They are now fully aware that they are of interest, can get involved in proceedings, and are supposed to set the agenda. The residents are in charge of the professionals, the project management company, the initiating company, the finance institutions, the building firm, the architect, planner, legal advisor, lawyer, supervisor and engineer, etc.

A housing problem with available land in city centers in Israel

Israeli citizens internalize the change. Urban renewal is a viable solution, in terms of land and location. It is an effective solution, cheap, fast with high applicability and most efficient when it comes to the housing shortage in Israel. Once the authorities start to approve projects and grant permits faster (the average now is about two years which is a long time), we’ll see a great shift toward Pinui Binui. Citizens want to improve their quality and standard of living, as well as help in creating hundreds of thousands of available housing units in preferred areas. The authorities must shorten processes and solve the bureaucracy problems.

Real Estate for the Public

This means a change in conduct. The roles will shift – if, in the summer of 2011 the market operated in the traditional manner and the citizens purchased apartments from contractors, then the citizens in the old areas are those now approached by contractors in order to provide services.

The conclusion: the government and authorities will have to “dismantle bureaucracy” in order to shorten processes

Urban renewal and Tama 38 are an integral part of a social trend in Israeli society.

The immediate need?

  • Fast tracks for permits and building certificates.
  • Reliable and professional companies will operate in the Tama 38 field, a field which will get more and more recognition.
  • Unique tax incentives and benefits will be declared for residents that will choose to invest in urban renewal while local authorities will promote the request within a year and will be the first to benefit.