Israel’s urban renewal market is entering 2026 with a trend of controlled slowdown – or in other words, a maturation process. After a decade of rapid growth, the entry of many new players, and a series of projects sometimes managed with an “overly entrepreneurial” approach, it seems the market is changing its mindset: Less enthusiasm, more responsibility.
“Today it is clear to everyone that urban renewal is not a 100-meter sprint, but a complex, multi-layered journey,” says Attorney Keren Blacharski, founding partner at Keren Cohen Blacharski & Co. (KCB). “Projects that are not planned correctly from the ground up do not survive. Any attempt to apply a model that worked in the past, without precise adaptation to the project’s characteristics, simply doesn’t work.”
The End of the “Copy-Paste” Model
Blacharski points to a series of changes currently shaping the market: A slowdown in permit approvals, policy changes by planning authorities, strict demands from financing bodies, and a shift toward data-driven work – all of which dictate new rules of the game. “Transparency, measurement, risk management, and thorough economic-legal planning are not recommendations; they are entry conditions,” she clarifies.
According to her, the consolidation process in the industry is already underway. “Many boutique firms will struggle to meet the requirements of capital, regulation, and financing. We will see mergers, acquisitions, and coalitions of large developers sharing knowledge, risks, and execution capabilities. Particularly notable is the In-house trend: More developers are seeking full control over planning, financing, and execution as a way to create managerial certainty in a volatile market.”
A Financing Market Seeking Planning Maturity
Alongside stricter criteria from financing bodies, she says new opportunities are also emerging – mainly for developers who present a cohesive planning, legal, and economic framework from the outset. “Instead of chasing solutions after the fact, there is demand for proactive approaches that manage uncertainty from the start,” she explains. “In such cases, financiers tend to offer more tailored, flexible, and creative solutions.”
Even legally, she notes a trend toward depth: Betterment levies, negotiations with reluctant tenants, and feasibility calculations are no longer handled according to previous automated procedures. “Supervisors are not rubber stamps, and the entire system evaluates each project according to its conditions, not old precedents.”
Blacharski concludes the forecast in clear terms: “The sector is not collapsing; it is consolidating. Those who understand the new rules, who know how to manage a project with precision, responsibility, and proven execution ability, will be able to lead the market. Those who continue to operate according to the 2022 rules simply will not reach the finish line.”