ONO ONE in Kiryat Ono — Israel's Landmark Urban Renewal Project Reshaping the City

Why Kiryat Ono Became Israel's Urban Renewal Capital

Kiryat Ono has earned the unofficial title of 'Urban Renewal Capital' with 17 approved urban renewal plans (13 full pinui-binui, 4 demolish-and-rebuild), and 8 complexes in active execution with 2,497 housing units in the pipeline. The combination of a proactive municipality, willing residents who understood the potential, and developers attracted by the city's compact geography has made it a national model.

Pinui-binui (evacuation-reconstruction) is the process where old buildings are demolished and replaced with modern residential towers. Existing tenants receive a new, larger apartment with a mamad (reinforced safe room), parking space, and balcony — in exchange for vacating their old unit during construction. Developers must pay residents full alternative rent throughout the building period, cover moving costs, and provide a bank guarantee equivalent to the new apartment's value.

The ONO ONE Story: From Demolition to Discovery of a Metro Station

The ONO ONE story began in 2020 when Bonei HaTichon received approval to evacuate 328 apartments in 15 old railway-style buildings on Levi Eshkol Street. The 3–4 story buildings, constructed in the 1960s, had significantly deteriorated. In their place would rise the 'Shderot HaMigdalim' (Tower Boulevard) — 9 residential towers, approximately 1,077 new apartments, commercial spaces, bicycle paths, and public gardens.

The project progressed in four phases. Phase 3, which began in 2024, involved demolishing 11 residential buildings and constructing 3 new towers with 359 apartments of 19–20 stories. Approximately 750 apartments have already been sold, with strong demand from young families across the greater Tel Aviv area.

But the project hit an unexpected obstacle. In September 2023 — one year after receiving a building permit — it was discovered that part of ONO ONE sits directly above a future metro station, one of two planned stations in Kiryat Ono. The Enforcement Authority issued a stop-work order. After negotiations with the National Infrastructure Committee (Vat'l), a resolution plan was developed that allowed Bonei HaTichon to continue the project in its original planned form. Construction has since resumed and the project is now in full activity.

Resident Rights in Pinui-Binui: What You're Entitled To

Residents of buildings entering a pinui-binui process have clearly defined legal rights. It's crucial to understand these before signing anything — not every developer will offer the maximum voluntarily.

The core right is a new, larger apartment. Under current regulations, the new apartment must be larger than the old one — typically by at least 12–15 sqm. In the ONO ONE project, residents who lived in an average 70 sqm 3-room apartment received new apartments of 75–90 sqm with a mamad, balcony, and underground parking. In Kiryat Ono's market, that upgrade represents roughly ₪500,000–800,000 in added value.

Beyond the apartment itself, the developer must pay full alternative rent throughout the construction period — enough to rent a comparable apartment in the same area. In Kiryat Ono, where 3-room rentals cost ₪5,500–7,000/month, that amounts to tens of thousands of shekels annually. Moving costs must also be fully covered, both when vacating the old apartment and when moving into the new one.

Market Impact: What Do Buyers and Investors Need to Know?

For buyers in the open market, ONO ONE offers new apartments starting at ₪2,840,000 for 3 rooms (2025 pricing), going up to approximately ₪4,749,000 for larger units. Compared to second-hand 4-room apartments in Kiraon, which sell for ₪2.7–3.2M, the 10–20% premium for a new apartment with mamad, parking, and full specifications is generally considered reasonable.

For investors, the most interesting data point is what's happening to surrounding properties. In Kiraon — where almost every block is surrounded by urban renewal projects — the average transaction price rose approximately 12% in 2023 versus 2022, significantly outpacing the city average. Old buildings with pinui-binui potential now trade at a 'potential premium' — buyers aren't just buying an old apartment, they're buying a ticket to a future reconstruction project.

Kiryat Ono's price per sqm (₪30,000–32,000) remains about 46% lower than Tel Aviv and meaningfully below Ramat Gan and Givatayim, providing a relative value proposition even as urban renewal drives appreciation.

Kiryat Ono's Trajectory: Metro, 65M Investment, and What's Next

Urban renewal doesn't happen in a vacuum. Kiryat Ono's reconstruction wave is backed by government investment of ₪65 million in infrastructure and public buildings under new 'umbrella agreements', and by one of the region's most anticipated infrastructure projects: the Purple Line metro/light rail.

The Purple Line, expected to begin service around 2027, will run along Route 461 and connect Kiryat Ono directly with Ramat Gan and Tel Aviv. One of two planned Kiryat Ono stations will be adjacent to the ONO ONE project — the same station whose discovery temporarily halted construction. Research consistently shows properties within 800m of transit stations appreciate 8–15% upon opening.

Price trends have been moderate: a 3–4% increase between 2023 and 2024, keeping Kiryat Ono more accessible than its neighbors while still outperforming the national average. The large new supply from pinui-binui projects has helped absorb demand increases, preventing the type of price surge seen in supply-constrained markets. With interest rates declining in 2025–2026 and several stalled projects restarting, activity is expected to accelerate.

If You Live in an Old Building in Kiraon — What to Do Now

If you live in an old building in Kiraon or other veteran neighborhoods of Kiryat Ono, you may be receiving approaches from developers about pinui-binui. Here's what matters before signing anything.

First, never sign without independent legal advice. A tenant representative — appointed by residents, not the developer — should be an experienced urban renewal attorney. Under the law, you're entitled to have this representation paid for by the developer. Second, check whether your building is already within a declared complex. The Kiryat Ono local planning committee maintains the list of approved complexes. If your building is already declared, 80% resident consent is enough to advance the project — even over individual objections. Third, understand what you're gaining versus what you're giving up. Old buildings in Kiraon don't just hold current market value — they hold renewal potential worth an additional 10–25% above base value according to practitioners in the field.

Want to know your property's current value and what urban renewal potential means for it? Get a professional property assessment — speak with Shmuel.