Master Plan (Urban Development) of Tel Aviv: Experts Against Transformation Taxes

Urban planning master plan of Tel Aviv, For several years, the municipality of Tel Aviv has been requesting payment of improvement fees from apartment sellers in Tel Aviv. This is in accordance with the overall urbanization plan. Several decisive appraisers have reacted to cancel the fee request. Furthermore, they stated that the urban planning plan is not improving.

Is the urban planning master plan of Tel Aviv controversial?

The master plan of Tel Aviv, TA / 5000, has not improved the conditions of recently sold properties. According to some appraisers, the conflicts between the municipality and apartment sellers in the city remain stalled.

For example, a three-room apartment was sold for 1.8 million shekels at 16 Ben Zvi Street, in southern Tel Aviv. The apartment is located on the 5th floor of a 7-story building with an elevator.

The municipality of Tel Aviv has demanded an improvement tax from the sellers. Notably, claiming that the Cell 5000 plan has increased the property value by 126,000 NIS. On the grounds that “the plan allows for additional constructions subject to the approval of a detailed plan.

However, sellers contest this arbitrary decision. They do not see at all how the TA500 Program has contributed to the price evolution.

The master plan of Tel Aviv with planning requirements.

Furthermore, the status indicated in the expertise informs that there is uncertainty in the application of rights under the new program. In addition to the municipality’s planning requirements, such as constraints related to the allocation of public spaces.

Contribution of program resets,” noted the regional council, arguing that the assessment of the local committee did not take into account the component of uncertainties.

According to him, the examples on which the local committee relied were not relevant. Since they refer to housing renovation projects, vacant land, and employment zone construction.

Regarding two critical assessments cited as examples, a residential apartment in a common building on Nardor Street 20 received no improvement. According to the plan, and in the case of a detached house on Mizan Street 9, there was improvement.

An economic potential that serves as a basis for improvement:

On the other hand, the local committee of Tel Aviv argued that the plan contributes to the property value. Because it has facilitated the availability of achieving an increase in the building on the property.
In his opinion, the plan has added construction rights, volumes, and height. Still according to the program, the maximum number of floors in this area reaches 15 floors. The committee’s appraiser argued that the early availability of construction rights from zero creates economic potential. Thus, this constitutes a cause for improvement as determined by law and jurisprudence.
He also stated that one of the budget sources for the preparation and implementation of the master plan is an improvement tax.
In conclusion, in the absence of funding sources, the implementation of the plan will be delayed and will be difficult to carry out.

Do you think this remains fair?

Friends Isralanders, we will know more about this very soon.

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