What Was Approved: Two Plans That Will Reshape Or Yehuda
In September 2025, the Vatmal committee approved the deposit of two major urban plans for southern Or Yehuda. Together, they represent one of the most significant development steps taken in the greater Tel Aviv area in recent years.
TAMAL 2030 — Southern Neighborhoods Renewal — covers 700 dunams and includes demolition of 2,206 aging apartments and construction of 5,288 new units through evacuation-reconstruction. The plan also includes 300,000 sqm of employment and commercial space, a football stadium spanning 131 dunams, and 115 dunams of public open spaces. Buildings will rise up to 15 stories.
TAMAL 1106 — Rabin West — sits on 229 dunams of vacant state land in the city's southeast. Promoted by the Israel Land Authority and the municipality, it includes 2,650 new housing units, 125,000 sqm of commercial and employment space, and 61 dunams of public buildings and open spaces.
| Plan | Area (dunams) | New Units | Commercial/Employment | Public Space | Status |
|---|---|---|---|---|---|
| TAMAL 2030 — Southern Neighborhoods | 700 | 5,288 | 300,000 sqm | 115 dunams + stadium | Approved for deposit |
| TAMAL 1106 — Rabin West | 229 | 2,650 | 125,000 sqm | 61 dunams | Approved for deposit |
| Total | 929 | ~8,600 | 425,000 sqm | 176+ dunams | — |
Important context: The timeline is realistic but extended. Building permits for the southern neighborhoods are expected to begin within approximately three years, and the full project will unfold over a decade or more. This isn't overnight development — but the plans are officially approved, which is a milestone Or Yehuda has waited decades to reach.
- TAMAL 2030 includes evacuation-reconstruction of neighborhoods built in the 1950s and 1960s that desperately need renewal
- TAMAL 1106 will be built on vacant state land — no evacuation needed, enabling a faster timeline
- Both plans include green boulevards connecting new neighborhoods to the historic city center and Ayalon Park
Airport Restrictions Lifted — The Barrier That Held Or Yehuda Back for Decades
To understand why these plans are so significant, you need to know the backstory. In the late 1990s, severe construction height restrictions were imposed on Or Yehuda's southern neighborhoods by Israel's Civil Aviation Authority due to noise levels from nearby Ben Gurion Airport. These restrictions effectively blocked any high-rise construction and prevented urban renewal projects from moving forward.
Until recently, the maximum permitted building height in most of Or Yehuda was 86 meters above sea level — roughly 15 stories — and any deviation required special committee approval. In 2024, the planning committee approved a new height map that dramatically eases restrictions across most of the city, based on an aviation survey proving that the proposed construction wouldn't compromise flight safety.
This decision was the key that unlocked the 8,600-unit approval. For Bik'at Ono residents, it represents a structural shift — Or Yehuda has gone from a city that couldn't grow to one with massive development potential.
- Airport noise restrictions blocked southern neighborhoods from development since the late 1990s
- A new aviation survey confirmed that high-rise construction is safe
- The lifted restrictions enable buildings up to 15 stories in areas previously limited to low-rise
Apartment Prices in Or Yehuda — And How They Compare to Neighboring Cities
Or Yehuda remains one of the most affordable cities in the Bik'at Ono area. The average price per square meter stands at approximately NIS 26,000–27,000, with an annual increase of about 7.5% — a relatively fast pace reflecting market expectations around the renewal plans.
| City | Avg. Price/sqm (NIS) | New 3-BR | New 4-BR | 5-BR |
|---|---|---|---|---|
| Or Yehuda (city avg.) | 26,000–27,000 | ~2,400,000 | ~2,700,000 | ~3,000,000 |
| Or Yehuda (Neve Ayalon) | ~30,000 | ~2,770,000 | ~3,100,000 | ~3,390,000 |
| Kiryat Ono | 31,000–34,000 | ~2,800,000 | ~3,250,000 | ~3,800,000+ |
| Ganei Tikva | 32,000–35,000 | ~2,900,000 | ~3,400,000 | ~4,000,000+ |
| Yehud-Monosson | ~30,000 | ~2,600,000 | ~3,000,000 | ~3,500,000 |
January 2026 transaction data reinforces the picture: a 4-bedroom apartment in the Tzfrir neighborhood (built 2000) sold for approximately NIS 2.4 million, while a new 5-bedroom in Neve Ayalon sold for NIS 3.39 million. The 15%–25% price gap between Or Yehuda and Kiryat Ono or Ganei Tikva makes the city a serious option for young couples and upgraders looking for quality living in Bik'at Ono at a more accessible price point.
- Neve Ayalon prices are ~15% above the city average but still below Kiryat Ono and Ganei Tikva
- Annual price growth of 7.5% in Or Yehuda — among the highest in Bik'at Ono
- The price gap with neighboring cities is expected to narrow as projects advance
Projects Already Underway — Neve Ayalon, HaSavyon, and HaAtzmaut
While the 8,600-unit plans are approved but not yet built, several significant projects in Or Yehuda are already in active construction, proving the renewal trend is real.
Neve Ayalon is an entirely new neighborhood in western Or Yehuda, built under a 2017 framework agreement between the municipality and the state. It will include approximately 2,500 housing units, schools, parks, and commercial areas. Initial occupancy is underway, with additional move-ins expected throughout 2026.
The HaSavyon complex is a Dimri-led evacuation-reconstruction project: 184 old apartments will be demolished and replaced by 808 new units in 8 towers up to 18 stories. Phase 1 has begun — 40 apartments have been demolished and three new towers are under construction.
The HaAtzmaut (Independence) project launched in 2024 as the city's second urban renewal project to reach execution stage. Phase 1 includes a 15-story, 60-unit residential tower near the municipal library on Moshe Dayan Street.
- Neve Ayalon — 2,500 units, initial occupancy 2026, adjacent to Ayalon Park (600 dunams)
- HaSavyon (Dimri) — 808 units in 8 towers, Phase 1 under construction
- HaAtzmaut — 60 units in Phase 1, the tower is currently being built
Transportation Infrastructure — Purple Line, Metro, and O PARK
One of the key factors changing the equation in Or Yehuda is transportation. The city is set to receive connectivity it has never had before.
The Purple Line light rail will include 6 stations in Or Yehuda, directly connecting the city to Ramat Gan, Givatayim, and Tel Aviv. The line passes through 8 municipalities with 46 stations total, carrying up to 256,000 passengers daily at 4-minute intervals. Current expected opening: 2028.
The Metro (M3 Line) plans include 2 stations within Or Yehuda's boundaries, with a depot complex in the western part of the city. Expected opening: 2035–2037. While this is a long-term project, even the planning stage adds property value.
O PARK is a 1 million square meter business, commerce, and leisure complex being built between Or Yehuda and Ben Gurion Airport. It features districts for startups, fintech, green-tech, hotels, cinema, restaurants, and a 600-dunam park — the second largest in Gush Dan. Phase 2 is already in marketing. The project is expected to create thousands of local jobs and transform Or Yehuda from a commuter town into a live-work hub.
- 6 Purple Line stations in Or Yehuda — direct connection to Ramat Gan and Tel Aviv (expected 2028)
- 2 Metro M3 stations — connection to Holon, Petah Tikva, and Tel Aviv (expected 2035–2037)
- O PARK — 1 million sqm of employment and leisure, already in construction and marketing