The Quarters 5 and 6 Plan (Tochnit HaRova'im), the urban renewal plan for the historic heart of Tel Aviv, has received final approval from the district planning and building committee, as reported by Bizportal and Nadlan Center on October 28, 2026. The plan redefines building rights across about 1,700 dunams: between Bograshov St. and Shaul HaMelech Blvd. in the north and Yitzhak Elhanan St. in the south, and between HaYarkon St. in the west and Menachem Begin Rd. and Sprinzak St. in the east. According to the reports, it allows about 14,000 housing units to be built in an area that today has about 21,600 apartments. Anyone who owns an apartment within the plan area should find out now what may be built on their lot and how much it could cost them.
What the Plan Allows
The plan was submitted by the local planning and building committee and approved by the district committee within 11 months of its submission. According to Nadlan Center, the chair of the district committee explained that the plan was advanced quickly to create planning certainty and encourage renewal, in light of the ongoing state of emergency.
Building heights range from 5.5 to 7.5 floors, depending on the character of each area. The scope of rights on each lot is derived from its area, the permitted number of floors and the building lines. Renewal proceeds lot by lot: owners can add construction to an existing building, or demolish and rebuild. The added density also relies on public transportation: according to Nadlan Center, the plan takes into account the Red Line of the light rail, the Green and Purple Lines and three future metro stations, and its consistency with TAMA 70 was reviewed.
According to Globes, the plan applies to residential buildings, residential space above retail and vacant lots. It permits an office within an apartment when the apartment's owners are the ones using it, and it authorizes the local committee to approve public uses and hotel use on all floors and retail on the ground floor. Allenby, Ben Yehuda, Carlebach, HaRakevet and Menachem Begin, along with the southern part of Yehuda HaLevi, are designated as commercial corridors with residential units above.
Preservation Buildings and Public Space
Most of the area lies within the White City, which has been declared a UNESCO World Heritage Site. Buildings designated for preservation are not part of the plan, and according to the reports their renewal requires a case-specific planning review. On the other lots as well, the plan seeks to preserve building volumes, the historic lot layout and the character of the street. An owner of an apartment in a preservation building will find no new rights in the plan, and the question of that building's renewal will be decided in a separate proceeding.
A notable new element concerns public space. For the first time in this area, a lot larger than 700 square meters on which a new building is constructed will be required to include built public space, for example for a daycare center, a kindergarten or a community and cultural institution. Globes noted that the municipality will be able to require this space on the ground floor. For the developer and the apartment owners, this is a real economic factor, because space allocated to the public will not be built as apartments.
Betterment Levy Under the Quarters 5 and 6 Plan
This is where the significant economic change lies. In Quarters 3 and 4, where an earlier Quarters plan was approved, apartment owners enjoyed broad protection under TAMA 38, which prevented the municipality from collecting a large part of the betterment levies (heitel hashbacha). As reported by Globes, TAMA 38 has expired, and its place has been taken by the Shaked Alternative (Chalufat Shaked), the track designed to replace it.
According to appraiser Dani Tarshansky, interviewed by Globes, this track allows a levy of 25% of the increase in value at the building permit stage and 50% upon sale, so the new plan provides only partial protection. In his estimate, anyone who sells an apartment in these quarters can expect to pay hundreds of thousands of shekels. The article also stated that the municipality may begin collecting levies within the coming weeks, long before a single new apartment is built here.
Levy rates are also set to change in the parallel track, pinui binui (evacuation and reconstruction). According to a Nadlan Center report from November 1, 2026, the Government Authority for Urban Renewal has directed local authorities to set new levy rates for such projects by May 1, 2027: a full exemption, 25% or 50%. Where a local authority does not decide, a rate of 25% will apply. The directive does not address the Quarters plan, but apartment owners in large buildings in the area who are also considering pinui binui should take it into account.
The levy is not paid on the day the plan is approved. It is collected when the property owner exercises the rights, usually upon a sale or when a permit is issued. When an assessment arrives, you have 45 days to request a deciding appraiser or file an appeal, as we explained in our guide to betterment levy assessments. The terms themselves, betterment levy and TAMA 38, can be found in our glossary.
What to Do Now
If you are considering selling an apartment in the area, obtain an estimate of the increase in value before signing, and state explicitly in the sale agreement who bears the levy. A price agreed without such a clause may turn out to be much lower than it seems.
A building's representative committee approached by a developer should first check the basics: whether the lot is within the plan area or is a preservation building, how many floors are permitted on it, whether a public space requirement will apply to it, and how the levy affects the project's economic feasibility. We discuss the agreement with the developer and the security for apartment owners in more detail on our Urban Renewal and TAMA 38 page.
Even with no transaction on the horizon, it is worth checking the plan documents to see what was set for your specific lot and whether notice of the plan's approval has already been published. As Bizportal noted, the approval establishes the framework of rights, but implementation will be gradual, project by project and through building permits. Globes estimated that the process may take decades.
Apartment owners or building representative committees in Quarters 5 and 6 can contact us for a review of the lot, the proposed agreement and the expected levy in their case.
Questions and answers
Is a betterment levy payable under the Quarters 5 and 6 Plan?
According to the reports, yes. In Quarters 3 and 4, apartment owners enjoyed broad protection under TAMA 38, while in Quarters 5 and 6 the municipality is expected to collect a levy. According to an appraiser interviewed by Globes, the rate is 25% of the increase in value at the building permit stage and 50% on sale. The levy is collected when the rights are exercised, not on the day the plan is approved.
Does the Quarters 5 and 6 Plan apply to a building designated for preservation?
No. Buildings designated for preservation were excluded from the plan, and their renewal requires a case-specific planning review. According to Globes, the plan also does not apply to a lot that has its own detailed plan setting building provisions.
How many floors may be built under the Quarters 5 and 6 Plan?
Between 5.5 and 7.5 floors, depending on the characteristics of the area. The rights on each lot are derived from its area, the number of floors and the building lines, and they can be exercised by adding to an existing building or by demolishing and rebuilding.
Source: Bizportal (Hebrew), 28.10.2026; Nadlan Center (Hebrew), 28.10.2026; Globes (Hebrew), 2.11.2026; Nadlan Center, Government Authority for Urban Renewal directive (Hebrew), 1.11.2026
First published in Hebrew. Read the Hebrew original