TAMA 38 vs Pinui-Binui: What Is the Difference for Buyers?

TAMA 38 was a national plan to upgrade a single existing building, either by reinforcing it and adding floors or by demolishing and rebuilding that one building. It has now ended for new projects and been replaced by local building-renewal plans under the 2022 Shaked Alternative. Pinui-binui (pinuy binuy) is different and still active: it evacuates and rebuilds a whole compound of several buildings under the 2006 Pinui-Binui Law. The enduring distinction for a buyer is single building versus whole compound, and in both the price should reflect the project's documented statutory stage.

The core difference in one line

TAMA 38 was a single-building program. Pinui-binui is a whole-compound program. That distinction drives the scale, the timeline, the uplift, and the risk you buy into, and it holds even now that single-building renewal has moved from TAMA 38 to local plans.

What replaced TAMA 38

TAMA 38 (National Outline Plan 38) stopped accepting new permit applications in 2022. It has been replaced by the Shaked Alternative (in Hebrew, "chalufat Shaked"), enacted as Amendment 136 to the Planning and Building Law. Instead of one national plan, each municipality now sets its own local building-renewal policy (in Hebrew, "hitchadshut binyanit"), with tools such as a betterment levy and expanded building rights. In a limited group of municipalities, TAMA 38 continued to apply during a transition period until the local replacement plan took effect. Buildings already permitted under TAMA 38 proceed to completion. Pinui-binui sits under a separate law and was not affected by this change.

Side by side

FactorSingle-building renewal (TAMA 38, now local plans)Pinui-Binui
ScopeOne existing buildingAn entire compound of multiple buildings
Legal basisFormerly TAMA 38; now local building-renewal plans under the 2022 Shaked Alternative (Amendment 136)Pinui-Binui Law, 2006 (with the 2021 Section 5א amendment)
Building-level variantsReinforce and add floors (residents stay), or demolish and rebuild the one buildingEvacuate residents, demolish, and rebuild the whole compound at higher density
Typical scaleSmall, one addressLarge, dozens to hundreds of units
Typical timelineShorter, often 3 to 6 yearsLonger, often 6 to 10 years
Floor-area upliftModestLarger, typically 30 to 90 percent
Owner thresholdFewer owners to align in one buildingNeeds a supermajority across many owners in the compound
Status in 2026TAMA 38 ended for new permits (2022); replaced by local building-renewal plans (Shaked Alternative)A primary, active urban-renewal route

What matters when you buy into either

Whichever track a project sits in, the decisive question is the same: is the price fair for the project's real, documented statutory stage? An apartment in a compound that only has a developer selected is a very different purchase from one with an approved plan and a building permit in hand. When both are marketed with the same glossy language and priced within a few percent of each other, one of them is mispriced. That gap is exactly what QUANTUM's Mispricing Index measures.

Check before you buyWhy it matters
Which track, and under which planSingle-building renewal and pinui-binui differ in scale, timeline, and uplift. For a building, confirm whether it runs under a legacy TAMA 38 permit or a newer local plan.
Documented statutory stageThe single biggest driver of value and timing. Verify it, do not trust the marketing stage.
Price vs stage (the mispricing gap)Is the price fair for that stage? This is what the Index ranks.
Who represents youMost agents work for the developer or seller. A buyer-side broker checks the deal on your behalf.

Where QUANTUM fits

QUANTUM is a buyer-side brokerage focused on pinui-binui. We represent the buyer, check the price against the compound's real planning stage, and close the purchase remotely for diaspora buyers who do not want to fly to Israel to buy. For a single-building renewal deal, a specialist in that track is the right fit; that is a different vertical.

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Deeper reading: what is pinui-binui, the Mispricing Index, how to tell if a compound is priced right, and how to buy remotely from abroad.

Frequently asked questions

Is TAMA 38 the same as pinui-binui?
No. TAMA 38 upgraded one existing building; pinui-binui rebuilds a whole compound of several buildings. Different scale, law, timeline, and uplift.
Is TAMA 38 still available?
Not for new projects in most places. It ended for new permit applications in 2022 and was replaced by local building-renewal plans under the Shaked Alternative. Pinui-binui was not affected and remains active.
Can a foreign buyer purchase in either track remotely?
Yes. A narrow power of attorney and an Israeli attorney let diaspora buyers complete the purchase from abroad. QUANTUM handles this for pinui-binui compounds.