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Evacuate & renovate -Israel urban renewal

“Evacuate and renovate” or “Pinui U'binui” is a buzzword in many Israeli property owners’ minds. A Pinui-Binui deal is super lucrative for owners who will benefit from a serious increase in their property’s value without investing even a single shekel. The process takes old and outdated buildings in need of repair, evacuates the tenants, and demolishes the building, which is then rebuilt from the ground up – modernizing residential apartment blocks and their infrastructure too, including communications, electricity, water supply, sewage systems, roads, parks, and surrounding areas – giving new life to old but loved neighborhoods. But …the process can be overwhelming, for property owners wondering how to benefit from this trend; we are here to give you some advice and share our knowledge on the topic.

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  • Urban renewal projects advance at international standards.

“Evacuate and renovate” or “Pinui U’binui” is a buzzword in many Israeli property owners’ minds. A Pinui-Binui deal is super lucrative for owners who will benefit from a serious increase in their property’s value without investing even a single shekel.

The process takes old and outdated buildings in need of repair, evacuates the tenants, and demolishes the building, which is then rebuilt from the ground up – modernizing residential apartment blocks and their infrastructure too, including communications, electricity, water supply, sewage systems, roads, parks, and surrounding areas – giving new life to old but loved neighborhoods.

But …the process can be overwhelming for property owners wondering how to benefit from this trend; we are here to give you some advice and share our knowledge on the topic.

Hold Real Estate has a development team dedicated to this area of expertise. Our team is ready to accompany you through the process. To schedule a call with us, click here! 

Let’s start from the beginning – why is urban renewal trending?

By definition, urban renewal is a process during which old urban areas are upgraded and transformed into a modern, well-kept living environment that increases their value, thereby changing the demographics of that area by attracting tenants who can afford the higher prices and rentals. Urban renewal is a relatively lengthy process that requires the collaboration of the following stakeholders: the apartment owners, the local municipality, and a reliable development company with building expertise.

How do you start a Pinui-Binui project?

Since this is a complex and unfamiliar process, these are the steps you need to follow:

  • Select a tenants’ representative for your building to liaise with the development company
  • Appoint an attorney to represent the tenants of the building
  • Select the development company that will carry out the project
  • Appointment a building inspector to oversee the project. (the tenants must choose this person so he can objectively supervise the development milestones)
  • Approval of the project plan with the municipality and the Ministry of Construction and Housing
  • Finally, obtain a building permit to start the project.  
 

We should mention that although this sounds like an arduous and lengthy process, using the right development company with expertise in Pinui-Binui projects will significantly shorten the processes.

Hold Real Estate has a development team dedicated to this area of expertise. Our team is ready to accompany you through the process. To schedule a call with us, click here!

All the reasons to go through this process with a company such as Hold Real Estate Development!

A Pinui-Binui deal is very lucrative because your property will benefit from a meteoric rise in value without you investing even a single shekel. Beyond that, there are quite a few advantages of working with us, including:

  • Support and guidance throughout the process with full transparency
  • Full rental payment while construction takes place
  • Receive a bigger, new modern apartment on completion
  • New elevator
  • New Patio / Balcony
  • Upgraded Mamad (Bomb shelter) in the apartment
  • Re-enforced building structure (Earthquake resistance)
  • Full Finance of the total fees of all project consultants
  • Financing of the building inspector’s fees
  • Funding attorney’s fees
  • Full financing of all project expenses and taxes
  • Financial support from one of Israel’s leading banks


We asked Ari Shapiro, CEO of Hold Real Estate Development, 3 fundamental questions that will contribute significantly to the success of your project:

1. What is the best way to harness the residents for the benefit of vacate-renovate?

When an entrepreneur explains all the options, benefits, and challenges that stand in the way, most of the work has been done. The residents need to find a developer who will see eye to eye with their needs and listen to them.

2. How to select the right company for an urban renewal project?

Everyone understands that an urban renewal project is a long-term project (we hope that the planning institutions will shorten the long periods) therefore, it is imperative to choose a company that you will become long-term partners with and will provide that personal attention constantly always interact with the mutual the benefit of both parties. This differs from straightforward purchases, where the relationship ends after the sale. Think about a long-term business partnership.

3. A golden tip for tenants who want vacate-renovate:
I recommend avoiding being dazzled by projects whose sole purpose is to hold the tenants captive in the eyes of the developer but to take a good look at the promises and benefits offered. Try to look for a developer who works on a limited number of projects and is a small company. That way, you will get the personal attention, transparency, and total commitment needed in such complex projects.

About Hold Real Estate Development Division

Hold is part of an international real estate group operating successfully in Israel for the past 25 years. With customer care and personal attention at the heart of everything we do, we take pride in being an Israeli boutique company offering guidance and assistance every step of the way and long after the sale is completed.

We believe in meticulous planning and execution of a project concept and will always build our projects using the latest technologies, the finest raw materials, and the highest finishing levels available on the market, to give you the best and highest quality construction, which will serve you for a long time.

Are you ready to start a Pinui-Binui project in your building in the fastest, most reliable, and most efficient way? Our team of experts is prepared to accompany you through the process. For more information, click here!

**The contents of this article are designed to provide the reader with general information and not to serve as legal or professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals before entering into any transaction

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