Bavli: Permit for 50 Homes on HaMishna

A full building permit has been granted for an urban renewal project at HaMishna 7 to 11 in the Bavli neighborhood, adjoining Yarkon Park. Three buildings holding 22 apartments will be demolished and replaced by two buildings of seven floors with 50 apartments. Evacuation is expected in about a year, with construction work to follow.

Why a building permit is a significant stage

In the chain of an urban renewal project, a full building permit is one of the most significant stages. It comes after the plan is approved, after the objections and after the engineering coordination, and it is what allows evacuation and construction to actually begin.

For apartment owners nearby, a compound that has received a permit is a compound whose planning risk has dropped sharply. That feeds directly into the way the market prices apartments on that street and around it.

The neighborhood context

Bavli is a neighborhood where two kinds of product live side by side: older walkup blocks on one hand, and towers and new projects on the other. The gap between them per sqm currently runs at 10% to 20%, and in absolute money at a great deal more, because the new apartments are larger.

Every further renewal project moves another group of apartments from the older side to the newer one. The position adjoining Yarkon Park adds value to this project that is hard to reproduce in other neighborhoods.

What to check before a deal in an older Bavli building

Whether the building sits in an organized compound, what its planning status is, and who the developer is if one has been chosen. Whether signatures have been collected, and how many. What the realistic timetable is, rather than the one in the presentation.

An apartment in a 1960s building without a reinforced safe room, and at times without an elevator, is priced entirely differently when there is a genuine renewal process behind it. We run that check for our clients in Bavli before every deal.

Courtesy of Merkaz HaNadlan · read the original article