Sderot Approves Major Palmach Urban Renewal Project with 515 New Housing Units
The Southern District Planning Committee approved a major urban renewal project in Sderot, adding 515 housing units and commercial spaces amid surging property values.
Sderot Urban Renewal: Massive Palmach Project Approved
The Southern District Planning Committee has officially approved a major urban renewal project in the city of Sderot, bringing significant development to the south. The initiative focuses on the Palmach complex and includes the construction of 515 new housing units distributed across 10 buildings, alongside approximately 1,800 square meters of commercial space.
New apartments in Sderot currently average between 14,000 and 16,000 NIS per square meter, while smaller units in select projects exceed this range, reaching 16,000 to 19,000 NIS per square meter. Beneficiaries of government-subsidized housing programs purchased apartments for 900,000 to 1 million NIS in recent years, representing a value increase of over 50% in a relatively short period.
"This is a first and significant step of urban renewal in the heart of Sderot, expanding development opportunities in the city," said Michal Meril, planner of the Southern District at the Planning Administration.
Project Scope and Infrastructure
The Palmach Urban Renewal Plan spans a total area of approximately 32 dunams in the established center of Sderot. To implement the project, 139 older housing units across three 3-story buildings will be demolished, resulting in a replacement ratio of 3.7. The plan was submitted jointly by the Government Authority for Urban Renewal and the Municipality of Sderot.
The development features continuous active street fronts along Menachem Begin and Herzl streets, two of the city's main thoroughfares, integrating commerce and public uses. At the center of the complex, planners designed a public "core space" featuring two public buildings, open green areas, pedestrian pathways, and recreational facilities built atop a covered parking structure.
Municipal Growth and Demand
Oded Plus, chairman of the Southern District Planning and Building Committee, noted that the approval marks a milestone in strengthening Sderot's older urban fabric amid rising housing demand in the region.
Despite severe impacts following the events of October 7, 2023, and subsequent temporary evacuations, Sderot's real estate market has rebounded strongly. Real estate activity has also surged in nearby communities such as Ofakim and Netivot, where thousands of new housing units are currently under construction.
