Israel's Umbrella Agreements: Billions Invested, Mixed Results
Israel's state financial reports reveal that less than half of the 591,631 housing units in 46 umbrella agreements have been successfully marketed, showing mixed results across cities.
The effectiveness of umbrella agreements signed between the state and local authorities in Israel reveals a mixed picture. While most housing units included in these agreements have yet to be marketed, successful authorities have experienced rapid growth.
According to Israel's financial reports, by the end of 2025, 46 umbrella agreements were signed—26 with the Israel Land Authority (ILA) and 20 with the Ministry of Construction and Housing. These agreements encompass 591,631 housing units, but less than half—253,384 units, or roughly 42.83%—have been successfully marketed so far.
The state has committed vast sums for infrastructure development, including 4.28 billion shekels in approved infrastructure development cost estimates, and another 11.53 billion shekels for public institutions and upgrading existing infrastructure in older neighborhoods.
Low Marketing Rates in Major Cities
Financial reports show that many umbrella agreements, including those signed a decade or more ago in major cities, display low marketing rates. In Haifa, the marketing rate stands at 42.6% (6,710 units out of more than 15,000) under an agreement signed in 2018. In Rishon LeZion, signed in 2014, 10,284 units were marketed, representing just 55.1%.
At the bottom of the list are Ashdod, where the umbrella agreement signed in 2017 has a marketing rate of just 14.95%, and Tirat Carmel, which signed an agreement a decade ago but achieved only a 14.5% realization rate.
Outstanding Successes in Peripheral and Central Cities
Conversely, some cities have fully or over-realized their agreements. In Beit Shemesh, the umbrella agreement achieved 108.1% realization, with 15,597 units marketed. In Kiryat Gat, the 2018 agreement reached 104.4% (7,758 units), and the 2013 agreement stands at 99.8%.
Success is not limited to the periphery. Tel Aviv signed an umbrella agreement for the new Sde Dov quarter in the north of the city, marketing 94.9% of the units, totaling 9,316 apartments.
Fresh Agreements: Holon and Samaria
Despite relatively low realization rates in older deals, the state continues to promote new umbrella agreements. Holon recently signed its first umbrella agreement for approximately 10,700 new housing units across eight different plans, alongside 1.75 million square meters of employment and commercial space. The financial scope of the agreement is approximately 3.1 billion shekels.
Another major umbrella agreement was signed in July 2026—the first of its kind with a regional council, specifically the Samaria Regional Council, for the construction of approximately 12,000 housing units as well as commercial and industrial spaces.
