JERUSALEM (VINnews) — The tallest residential tower in Israel is set to rise in the heart of the Diamond Exchange district in Ramat Gan. The Ramat Gan Municipality recently granted a building permit for two towers as part of the “Vertical City – Bursa Triangle” project, led by Israel Canada Group (56%), B.S.R. Group (20%), and Clal Insurance (24%).
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The project includes a 72-story residential tower which, once completed, will be the tallest of its kind in Israel, alongside a 60-story office tower. Additionally, an 8-story building will be constructed for commercial and public uses, as well as a 6-level underground public parking facility.
The total construction area for the two approved towers is approximately 170,000 square meters, out of about 340,000 sqm planned for the entire complex. The master plan includes mixed-use development:About 85,000 sqm allocated for office space, 400 long-term rental housing units (approx. 35,000 sqm), around 350 student dorms (approx. 10,000 sqm), public facilities and spaces of similar scale, a fire station, and commercial spaces.
Unlike other projects in the Tel Aviv metropolitan area, which mainly target the private market and luxury housing, the residential tower in this project (both the apartments and student dorms) will be entirely for rental, with a focus on a young demographic. The developer will have the option to sell the apartments after 20 years.
The tender for the residential tower was issued by the government company “Dira LeHaskir” (“Apartment for Rent”). In August 2021, a partnership between Israel Canada and B.S.R. won the bid with an offer of NIS 1 billion (including development and transaction costs).
In April 2024, due to rising interest rates and falling project valuations, the landowners decided to bring in Clal Insurance, which injected NIS 160 million and took over part of the project loans in exchange for a 24% stake.
The Ramat Gan Municipality views the project as a catalyst for broader redevelopment of the Diamond Exchange district, an area that has been dominated by office and commercial spaces for decades. The city’s Strategic Projects Directorate told Globes that the aim is to “rejuvenate” the area by bringing in young tenants who can rent new apartments in a high-demand area at accessible prices.
The lower floors of the residential tower will be allocated for student dorms, including micro-apartments, while the upper floors will offer apartments for young families. Both the city and Israel Canada have not yet provided specific rent prices.
Maintenance fees have not yet been determined. In similar, but shorter buildings in the area, these fees can reach over NIS 2,000 per month. Amir Rozenblum, an operations and maintenance consultant from the Idan Sheni Group, who serves as the operational advisor for the project, stated that the long-term rental model was considered in the building design:
“To avoid the high maintenance fees usually seen in similar projects, we matched the design and technology to the resident profile. For example, cleaning staff were replaced with robots, saving nearly 50% in costs.”
A key infrastructure component of the project is a 900-space underground public parking lot across six levels, located beneath the complex and fully owned by the Ramat Gan Municipality. Four of the levels have been leased to Vertical City Ltd. , Israel Canada’s development arm for the project , for use by residents and visitors.
No apartment in the project will have an assigned private parking space at the time of occupancy.
Construction is already underway, and the project is currently in the excavation and foundation phase. According to Israel Canada Group, the first occupancy is expected in 2030, subject to construction progress and site development.
In parallel, the company’s Q2 2025 financial reports indicate that Israel Canada has already sold approx. 26,500 sqm of space, generating around NIS 847 million. This accounts for about 35% of the office space currently being marketed, and company sources say there is strong demand, with prices starting at NIS 30,000 per sqm.
Alongside the current construction, the Ramat Gan Municipality is also advancing a new urban plan (TABA) for a third tower, planned to rise to approximately 100 stories. If approved, it would become Israel’s tallest building.
According to the city’s plan, this tower will feature mixed uses beyond office space, including:Approximately 20% residential area, a new campus for Shenkar College, whose current building across Begin Road is expected to be vacated and replaced with a new school facility.
As Israel becomes more observant, I think this place will lose its attraction.