New Construction in Ramat Gan for American Buyers
New Construction in Ramat Gan for American Buyers
Ramat Gan is one of the most active cities in Israel for new residential construction, much of it driven by urban renewal. Older buildings are being strengthened through TAMA 38 or replaced through pinui-binui, and new towers are rising near the Diamond Exchange and along main roads. For American buyers, this means a wide choice of new apartments, but also different types of projects with different risks. This guide explains how new construction works in Ramat Gan, how to protect your payments and how to follow a project from the United States.
Two Paths to a New Apartment
New apartments in Ramat Gan come mainly from two sources. The first is new towers and buildings on development land, often in the business district or along major roads. The second is urban renewal, in which developers add new units to strengthened buildings or build new buildings on the site of old ones. Each path has its own timeline and contractual structure.
Buying in an Urban Renewal Project
When you buy a new unit in a renewal project, the developer is working with existing owners as well as new buyers. The project's progress depends on approvals and on owner cooperation. Your lawyer should examine the agreement with the existing owners, the permit status and the protections offered to buyers of new units.
Check the permit status of the project
Review the arrangement with existing owners
Confirm protection for every payment
Understand the expected construction stages
Protecting Off-Plan Payments
Israeli law requires sellers of new apartments to protect buyers' payments, usually through bank guarantees or insurance. Your lawyer should confirm that every payment is covered and paid into the correct project account. This protection is vital for a buyer in the US.
Specifications in a Tower
Tower apartments often include lobby services, parking and shared amenities, which affect building maintenance fees. Review the specification for finishes, air conditioning, storage and parking allocation, and ask how shared amenities will be managed and paid for after handover. Ask for translated plans and written confirmation of any changes.
Following Construction from the US
Developers provide updates, but an independent engineer can offer an objective view at key stages. Clarify which communications will be in English, and agree on response times that account for the time difference. Keep all documents in a shared folder with your advisors. In renewal projects, where existing residents remain involved, occasional updates from the building committee can also offer a useful view of progress on the ground.
Handover and Warranty
A professional inspection before handover lists defects for repair. Israeli law sets warranty and repair periods for different defects, and your lawyer can explain how to submit claims from abroad. A representative with a power of attorney can attend if you cannot, with a clear defects list and photographs.
Financing and Tax
Payments over the construction period may be index-linked, and financing must follow the payment schedule. Consult an Israeli mortgage advisor, an Israeli tax advisor and a US CPA to plan transfers, reporting and purchase tax.
Frequently asked questions
What is the difference between TAMA 38 and pinui-binui
TAMA 38 generally strengthens an existing building and may add units, while pinui-binui usually replaces older buildings with new ones. Your lawyer can explain how this affects a specific project.
Are payments protected in renewal projects
Buyers of new units should receive legal protection for their payments. Your lawyer should verify it for each payment.
Can I follow construction without visiting
Yes, through developer updates, an independent engineer and a local representative.
Who handles the handover if I am in the US
A representative with a power of attorney, ideally with a professional inspector.
Elkayam Group
Elkayam Group works directly in development, urban renewal, pinui-binui and TAMA 38, and with its backing companies can provide guarantees, so we know how these projects are structured from the inside. Kobi Elkayam Real Estate Ltd is based on Rival Street in Tel Aviv, with three generations of family experience and an English, Hebrew and French speaking team.
Considering a new apartment in Ramat Gan Contact us for a clear review of the project.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv