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Plan 38

One of the most prominent segments of the real estate market today is the branch of urban renewal projects in general, and “Zoning Plan 38” type in particular. The benefits of a Plan 38 are clear, and so long as they are done by the right professionals they should generally be a good deal for everyone – both buyers and builders.

In the framework of the Third Amendment of National Master Plan No. 38, numerous amendments and additions were revised and added to the plan, which affect the feasibility of construction projects. One of the amendments concerns small houses.

Let us explain in more detail. Under Section 12 of the Plan prior to the Third Amendment, it was determined that regarding homes lower than two floors or with a built-up area of less than 400 m, there will be no additions to the building (additions that would otherwise be allowed under Section 11 of the Plan). Now in Amendment 3, that section was changed, and the new wording is not based on what is actually built today , but rather the zoning Plan for the land. Therefore, so long as the land is zoned for buildings taller than two floors or greater than 400 m, the land will be entitled to building additions under Section 11 of the Plan, even if what was actually built is less than what is allowed under the zoning plan.

It should be noted that the Plan which must be approved for the land is the Master Plan and it need not be a detailed plan, provided that building permits may be issued based on it (according to the criteria set in Section 145 of the Planning and Building Law).

It follows that there are opportunities for projects based on Plan 38 for small buildings, but it is important to remember that the construction of the project is a complex matter and subject to necessary approvals from the local authorities, and it is recommended to consult with the relevant legal professionals to minimize risks and costs.