New Tel Aviv master plan massively boosts building rights

For several years now, the real estate market and the world of urban planning have been waiting for the promotion of the new TA/5500 outline plan for Tel Aviv-Yafo, which aims to prepare for the planned development of the city up until 2035. This is an update of the existing TA/5000 outline plan for the city, which was approved in 2016. The reason for the long wait is mainly due to the enormous scale of building rights offered by the update, with the potential for an additional 11.3 million square meters of residential space, approximately 6.1 million square meters of office space and many other areas in other uses, and with the possibility of construction reaching up to 80 floors in certain places. Thus the updated plan is a major “event”. This week, the revised master plan reaches its deposit stage, and “Globes” answers the main questions surrounding TA/5500.

What is TA/5500?

Forming the strategic outline plan for the city began back in 2005, following which the current outline plan, TA/5000 was formed and implemented in 2017. The next stage was to formulate and approve of an update of TA/5000. In early 2021, work on the updated plan TA/5500 – began in practice, and in July 2022, the Tel Aviv Local Planning and Building Committee recommended its submission to the Tel Aviv District Planning and Building Committee. This week, the committee will finally discuss its submission, before hearing objections that will still be submitted.

How is the scale of building rights determined within the framework of the new plan?

The TA/5500 plan determines the scale of additional building rights that will be granted within its framework based on the concept of floor to ground ratio – the ratio between the area of a lot and the construction areas permitted on it, which is set by the local committee for each area, project or complex on its own. In the TA/5500 plan, it is determined after allocating space for public purposes.

Where are the most building rights granted?

In the updated plan, according to the planned and existing mass-passenger transportation system lines, most of the rights offered in it are along and around those routes. Accordingly, the plan defined building heights in the various areas of the city. For example, along the Ayalon Highway, where one of the metro lines is planned to pass underground, there is no height restriction – both in the section between the Halacha Interchange and the La Guardia Interchange, via the Arlozorov and Shalom Interchanges, and in the Holon Junction area.

Will there be a more significant enhancement of rights?

Yes. TA/5500 also offers building rights in specific locations, which will allow for particularly high-rise and extensive construction, some of which also exceeds Tel Aviv standards. Thus, in the vicinity of the Glilot junction in the northwest of Tel Aviv (the northernmost planned quarter in the city), a 15-floor building zone will be provided for office development, and a 11-floor building zone for housing and in exceptional construction for the area, for mixed use with offices, up to 80-floors will be permitted. In the Arad area of Park Atidim, a maximum 12.8 floor building zone for offices will be provided, and construction of up to 50-floors will be permitted. Nearby in Neve Sharet east, construction of up to 40-floors for offices will be permitted.

Does the plan offer more rights than those in TAMA 70?

By and large, the answer is yes. TAMA 70, which was approved at the end of last year by the National Planning and Building Council, is a national outline plan that determines the building rights along the Greater Tel Aviv metro lines. Many developers claim that the enhancement of rights it offers is not sufficient, and a look at the details reveals that there is some truth to this. Although TAMA 70 defines in its documents a “minimum building area” above which rights can be added, TA/5500, offers a much higher building area in certain places.

Which plan prevails in the event of a “clash”?

The two plans, TA/5500 and TAMA 70, refer in different places to the same areas and regions, mainly along the planned metro lines. Which of the plans’ provisions prevail in such a case? According to the provisions of TA/5500, it can be understood that its provisions prevail: “This plan is consistent with the provisions of TAMA 70,” the updated outline plan states. “Therefore, detailed plans included in the scope of TAMA will be promoted by virtue of this plan.” However, this is not a final ruling and this issue will also be raised in the discussions in the district committee, to ensure compatibility between the plans.

What about parking?

TA/5500 does not define any specific parking standard, but from its provisions it is possible to understand in which direction the wind is blowing. Preference for pedestrians over cars, and encouragement of the use of public transport, will lead to a cut in available parking spaces, certainly in the projects themselves. First, the plan stipulates that the parking standard will be in accordance with the standard in effect at the time of its approval. However, it states that “no linking of parking spaces will be permitted except in residential and public uses.”

The plan further stipulates that where there are many public buildings, construction of underground public parking will be required in the area, “which will add spaces beyond what is required according to the standard for public use itself.” It was further determined that entrances to the parking lot that cross walking and cycling lanes will be reduced, and conflicts between pedestrians and between loading and unloading passengers and goods will be reduced.

Who are the biggest beneficiaries of the plan and who are the losers?

It seems that the first and foremost beneficiary of the plan’s implementation is the Tel Aviv-Yafo Municipality, which, with the addition of millions of new square meters, will be able to rake in improvement levies amounting to tens of billions of shekels. In the past, the municipality estimated that it could collect almost NIS 6 billion from construction of the Sde Dov district alone. Developers, mainly in the residential sector, are also expected to profit, as has often happened in the past, whenever a major plan in Tel Aviv-Yafo was approved and undertaken.

The biggest losers are probably the neighboring municipalities, which are already facing low demand for office space. The TA/5500 plan will add more than six million square meters of office space to Tel Aviv, which will certainly keep the large companies there, instead of looking for space in nearby cities such as Bnei Brak, Petah Tikva, Holon, Bat Yam and Rishon LeZion, and certainly in more distant cities.

How long will it take for the plan to be approved?

It will be at least a few months until the plan is approved. If the Tel Aviv District Planning and Building committee does decide this week to deposit the TA/5500 plan, the objections phase will begin, which could take a considerable amount of time. After that, amendments to the plan may be required, and perhaps even another round of objections following them, and only then will it be brought for approval.

Will it be possible to implement projects after that? No. The TA/5500 plan is an outline plan under which building permits cannot be issued. This means that after its approval, it will be necessary to promote a specific plan for each area block or project within its area, and only after than can applications for specific building permits be submitted. In practice, this means that issuing the first building permits for projects designed according to the principles of TA/5500 will probably only take place in a few years.

Published by Globes, Israel business news – en.globes.co.il – on February 24, 2025.

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