A Comprehensive Guide for Foreign Property Owners to Israel’s H-500 (Holon) Zoning Plan
Holon’s H-500 zoning plan is a transformative blueprint for the city’s future, and it could immensely reshape the value of your property, potentially leading to a significant increase in its worth. Covering over 4,000 dunams of south Holon, this newly approved scheme paves the way for some 13,700 new homes (housing about 50,000 residents) and a sprawling 1,200-dunam park, alongside modern schools, commercial centers, and infrastructure.
In a country where central land is scarce, H-500 unlocks Holon’s largest remaining land reserve – a rare chance to build an entirely new community from the ground up. For foreign landowners with plots in this area (or those eyeing an investment), H-500 isn’t just another municipal plan – it’s an unprecedented opportunity to unlock development potential, significantly boost land value, and gain clear direction on what can be built.
However, turning this opportunity into a rewarding reality isn’t automatic. The rezoning and development process under H-500 involves legal procedures and careful planning that our experienced Israeli zoning attorneys can simplify for you.
Israeli zoning laws, planning committee approvals, and paperwork can be daunting, especially if you’re managing your property from abroad. This is where expert guidance becomes invaluable. Aharoni Law Firm brings precisely that expertise, helping foreign property owners steer through the H-500 process with ease and confidence, ensuring you make the most of this unique opportunity.
In the following guide, we’ll demystify the H-500 zoning plan and explain what it means for you as a foreign landowner. Armed with the right information – and the right legal partner – you can expect this process to be smooth and truly capitalize on one of Holon’s most significant development plans. We encourage you to call us at (888) 923-0022 or contact us through our online form to discuss how we can assist you.
The H-500 Holon Plan in Israel
Holon’s H-500 Plan is an outline zoning scheme for a huge tract (approximately 4,080 dunams, or about 4 square kilometers) of open sand dunes south of Holon. This area is the last large undeveloped land reserve in Holon, bounded by existing neighborhoods to the north, Highway 4 to the east, Rishon LeZion to the south, and the Ayalon Highway (Route 20) to the west. The vision for H-500 is to create an entirely new mixed-use urban district on what was once vacant land.
Development Scope and Timeline
Under the H-500 master plan, Holon will gain around 13,700 new housing units in modern residential towers and buildings. Most buildings will be high-rise (up to 22 floors) to comply with aviation height restrictions (because the area is under Ben Gurion Airport flight paths). In addition to housing, the plan allocates about 930,000 m² for employment (offices, commercial centers, etc.) and 175,000 m² for public buildings, making it a balanced live-work community.
Notably, H-500 also sets aside a massive 1,200-dunam “metropolitan park” of sand dunes and green space at the center of the site. This park, with a 400-dunam “preserved heart” of natural dunes, is designed to protect unique ecology while providing recreation for residents.
Planning for H-500 has been underway for many years. The Holon Municipality initiated the scheme in the 2000s, and formal approval was achieved in the late 2010s. By January 2018, the outline plan was published, and it has since passed district and national planning committees, reaching the final stages of validation. The H-500 area will be subdivided into six detailed development plans, moving from west to east, which will be approved in phases. Only once detailed plans are approved can construction permits be issued.
As of now, Holon officials have not announced a fixed date for the start of construction, cautioning that the timeline for breaking ground remains uncertain. Nonetheless, there is a strong expectation that implementation will proceed as soon as the detailed plans are finalized, and land values are anticipated to jump sharply once building begins.
Legal and Investment Implications of H-500 for Foreign Owners
H-500 is not only a bold urban project – it’s also a complex legal puzzle, particularly for the many foreign individuals who have ownership stakes in this land.
Much of the H-500 tract has a unique ownership history: it was parcelled out and sold to Jewish investors (including many from Europe, the U.S., and South Africa) in the 1930s, as part of early Zionist land purchases.
As a result, today there are thousands of individual plot owners, and many are non-Israeli heirs of the original owners. If you or your family purchased land in Holon decades ago (or inherited such land), the H-500 plan directly affects your property rights and opportunities. So, what are the implications?
Consolidation of Land Ownership
Because H-500 involves reorganizing a patchwork of small legacy plots into a coherent new neighborhood, landowners will not keep their exact old parcel boundaries. Instead, the plan uses a “re-parcellation” (consolidation and partition) approach.
All the small plots are effectively pooled, and owners will be allocated rights in new, buildable lots according to an agreed formula. This means your ownership becomes a percentage of a new parcel or building, rather than a standalone lot.
The H-500 plan defines “domains” and requires a detailed consolidation plan to distribute rights fairly among owners, including provisions for public areas. For foreign owners, it is crucial to participate in this process (usually via a representative or legal counsel) to ensure your share is correctly recognized.
Often, owners form associations or work with law firms to combine their rights and avoid fragmentation. By organizing together, owners can prevent disputes and even negotiate better terms once development starts.
Land Value and Betterment Taxes
The rezoning under H-500 is immensely increasing the land’s value. In fact, Holon’s Local Planning Committee determined that land values roughly doubled as a result of the plan’s approval. While this is good news for owners’ equity, it also triggers Israel’s hetel hashbacha (betterment levy).
A betterment tax is typically levied at 50% of the “unearned” value increase due to rezoning. Holon published a general assessment in 2018, suggesting an initial levy of ₪750 per square meter of land, amounting to an estimated ₪3.75 billion total charge across all H-500 landowners.
In practical terms, if you sell your Holon land after the plan’s approval (January 25, 2018 or later), you may be required to pay a substantial tax on the gain. There is an appeals process (through appraisers and committees) to challenge the levy calculation, and indeed, groups of owners are actively contesting the initial assessment.
The key takeaway for foreign investors is to budget for possible taxation when monetizing H-500 land. Professional advice can help in strategizing – for example, sometimes the levy payment can be deferred until actual building permits are issued.
Redevelopment Rights and Opportunities
Once detailed plans are approved, H-500 landowners will receive actual building rights – for example, the right to X square meters of residential construction in a particular new lot. At that stage, landowners can either build (usually by partnering with developers) or sell their rights to someone who will.
Given that H-500 plans for 13,700 units and around 50,000 new residents, the scale is immense and will attract development companies. Foreign owners might consider banding together to negotiate a combination deal with a developer (trading land rights for finished apartments or for cash).
It is important to note that not every part of the H-500 land is buildable – for instance, some plots fall within the planned park or new roads. The plan has accounted for this by granting “compensation rights” elsewhere (e.g., an owner whose original plot is now designated as parkland will get an equivalent holding in a residential plot).
Legal guidance from an Israeli real estate lawyer is crucial to understand what and where your new rights are. Furthermore, any sale or partnership agreement should be carefully reviewed to protect your interests and ensure you receive fair market value for these valuable rights.
Call our firm at (888) 923-0022 for a complimentary consultation.
Get A Free Consultation NowInheritance and Title Clarification
Because many current H-500 owners are descendants of the 1930s purchasers, a common issue is that the title may still be in the grandparents’ or great-grandparents’ names. Before one can fully participate in the redevelopment, inheritance issues must be resolved.
Foreign heirs will need to obtain an Israeli probate order (or succession order) to officially register the property in their name. Without this, you could face delays in receiving compensation or signing agreements.
We strongly advise heirs to proactively address estate matters: locate the title deed or land registration for your family’s Holon plot, and verify that you are recorded as the owner. If not, engaging an experienced Israeli attorney to handle the probate, will probate, or transfer of title is important. On a forward-looking note, if you are a current owner, consider updating your estate plan or Israeli will to specifically cover your H-500 property rights – this can prevent future complications for your beneficiaries.
Patience and Monitoring
Investors from abroad should view H-500 as a long-term endeavor. The construction of an entirely new neighborhood of this size is a multi-year (if not multi-decade) project from planning to completion. There may be periods of little apparent progress (as bureaucratic stages grind on), followed by rapid changes (once construction cranes appear).
Staying informed is important – for example, city announcements or official gazettes will indicate when detailed plans are deposited or approved. The Holon municipality will also issue notifications (Section 77–78 notices) that temporarily freeze permits to protect the plan’s integrity – these legal details matter if you were considering any interim use of the land.
צור קשר עם משרדנו לייעוץ חינם
At Aharoni Law Firm, we specialize in guiding international clients through Israel’s real estate and zoning maze. Our team combines authoritative knowledge of the H-500 plan with a friendly, client-focused approach, ensuring you understand each step and make informed decisions. We assist with everything from verifying your land’s new zoning status and handling rezoning applications to strategizing development or investment steps under the plan.
With our support in the legal, planning, and investment aspects of H-500, you have a seasoned ally dedicated to protecting your interests and maximizing your property’s potential. Working with us, you can be confident that you are in good hands and that we will work tirelessly to ensure your success. When the time comes for your land parcel to be ready for development or sale, you’ll be prepared to act quickly, with all paperwork in order.
