Gonenim / Katamonim, Jerusalem.
The Honest Guide from the Tel Aviv Property Index
Gonenim, still universally called the Katamonim, is a 1950s public-housing district in the middle of one of Jerusalem's largest urban-renewal waves. It is central, mixed and increasingly popular with young Anglo families, but much of what you buy today is a bet on towers that are not yet built.
Where it is
The Katamonim sit just south-west of the city centre. Old Katamon and the German Colony are a short walk to the north-east. Pat, Talpiot and the Malha area lie to the south and east.
The district is officially called Gonenim and is made up of Katamonim Aleph to Tet, plus the San Simon area around the park. Each numbered section has its own feel, from quiet low-rise streets to long housing blocks on busy roads. Buyers should judge the specific block, not the name.
Transport is a genuine strength. Bus routes run along the main axes into town, and the neighbourhood is on the route of the planned Purple Line of the light rail. The district planning committee has approved that line, which is to link Kiryat HaYovel through the Katamonim to Armon HaNatziv; no firm opening date has been set.
How the Katamonim were built
After 1948 the state needed housing fast for mass immigration, much of it from North Africa and the Middle East. The Katamonim were built in the 1950s and 1960s as public housing, with long, repetitive blocks of small flats. Many were owned or managed by state housing companies.
For decades the area carried the reputation of a poorer, neglected district. It was part of national neighbourhood-rehabilitation efforts, and some flats are still public housing today. Yet it also produced tight communities, strong local identity and a lively street life.
The San Simon area takes its name from the Greek Orthodox monastery at the heart of the park. The site saw fierce fighting in 1948, and the memorial there remains part of the neighbourhood's story.
What it is actually like today
The Katamonim are loud, busy and unpretentious. Markets, kiosks and small shops line the main streets, and there is a mix of traditional shuls from many communities. Evenings are lively; this is not a quiet suburb.
San Simon Park is the green heart of the area. It is a well-used park with lawns, play areas and walking paths around the monastery. For families in small flats, it functions as the shared garden.
The housing stock is the weak point. Many blocks are ageing, lack lifts, parking or a mamad, and have small rooms. That is exactly why developers are so interested.
The renewal wave
The Katamonim are one of the largest pinui-binui (evacuate-and-rebuild) zones in Jerusalem. Old walk-ups are being replaced by towers of 20 to 35 storeys, often multiplying the number of homes several times over. Trade press describes the area as changing street by street.
The flagship is a scheme by developers Ashdar and Barzani for roughly 1,200–1,250 homes in towers of up to about 35 storeys. It has been approved by the planning authorities, according to trade reports. In June 2025 a building permit for around 1,000 homes in the Katamonim was also reported.
More is coming. On 28 May 2026 Jerusalem's local planning committee recommended six pinui-binui plans across the city for deposit, totalling about 1,700 homes. One is a municipal plan for about 440 homes in towers of 25–30 storeys at Bar Yochai and Dov Yosef, inside the Katamonim. Another, for 336 homes on San Martin Street, sits on the border with Pat. These are recommendations for deposit, not final approvals.
What renewal means for buyers
For an owner of an old flat in a designated complex, renewal can mean a new, larger flat with a lift, parking and a mamad, at no cost. That potential is already priced in: the Katamonim now trade at about ₪40,500 per square metre, above the Jerusalem average.
The risks are real. Schemes take many years from plan to keys, and some stall or change developer. During construction you rent elsewhere, usually with the developer paying rent. The finished neighbourhood will be much denser, and residents' groups in Jerusalem have objected to height and infrastructure.
The law also matters. Under the Urban Renewal (Evacuation and Construction) (Compensation) Law 5766-2006, a refusing owner can be sued once a statutory majority of owners has signed. Reports indicate that threshold now stands at two-thirds of owners in the complex, down from 80%. Check the current text and any per-building conditions for your specific complex before relying on it.
TAMA 38 is no longer a route: it has expired in most of the country as of 18 May 2026, except for projects with a valid permit. New building-level projects run through the Shaked Alternative, under Planning and Building Law amendments 136 and 139, or through pinui-binui.
Who lives here
The Katamonim are one of the most mixed neighbourhoods in Jerusalem. Veteran families, often of Moroccan, Kurdish, Iraqi or Persian origin, live next to public-housing tenants and new buyers. There are secular, traditional, national-religious and some Haredi households.
Anglo olim have arrived in significant numbers over the past decade, drawn by location and relative value. The municipality now lists Gonenim among its Anglo communities. English-speaking shuls, young families and students have become part of the mix.
That mix is the area's charm and occasionally its friction. Newcomers and veterans do not always share priorities, particularly over renewal, parking and noise. Most of the time, though, it works.
Prices and what you get
The Katamonim sit at the Jerusalem median in price, but well above it per square metre, because flats are small.
| Neighbourhood | Median price | ₪/m² | Registered deals |
|---|---|---|---|
| Katamonim / Gonenim | ₪2,700,000 | ₪40,484 | 681 |
| Old Katamon | ₪3,375,000 | ₪47,222 | — |
| Kiryat HaYovel | ₪2,321,000 | ₪35,714 | 987 |
| Jerusalem (city) | ₪2,723,500 | ₪35,215 | 14,310 |
Registered sales, Jan 2023 – Aug 2026
Recent registered deals show the range:
- Horqanya 16: 4 rooms, 89 m², second floor, ₪3,300,000 (July 2026).
- Horqanya 8: 3 rooms, 64 m², second floor, ₪2,730,000 (July 2026).
- San Martin 15: 3 rooms, 54 m², third floor, ₪2,280,000 (July 2026).
- Rashbag 13: 4 rooms, 97 m², second floor, ₪3,835,000 (June 2026).
At the median, ₪2.7m typically buys an older three-room flat of 55–70 m² in a walk-up. A flat inside an approved renewal complex costs more, because you are buying a future new unit. New-build flats in completed towers sell at a clear premium to that.
The honest risk is paying today for tomorrow. If a scheme is delayed by years, you own a small old flat bought at a renewal price. Always ask what stage the plan for your building has actually reached.
Buying here: what to check before you sign
The renewal status of the building.Find out whether it sits in a declared complex, whether a developer has signed owners, and what percentage has signed. Get the plan number and check its stage: in preparation, deposited, approved or permitted.
The developer agreement.If owners have signed, read the agreement you would be stepping into. Check the promised unit size, guarantees, rent during construction and deadlines.
Off-plan protections.In a new tower, payments above 7% must be secured under s.2 of the Sale (Apartments) (Assurance of Investments) Law 5735-1974. For contracts from 7 July 2022, delay compensation runs under s.5A of the Sale (Apartments) Law 5733-1973, and index linkage is capped: the first 20% unlinked, at most 50% of each later payment linked.
Public-housing history.Some flats were bought from state housing companies with conditions attached. Check the Tabu or housing-company registration and any restrictions on transfer.
Purchase tax at the median.On ₪2,700,000 a single-home buyer pays about ₪30,538. An oleh under Reg 12A pays about ₪3,606. A foreign resident or additional-home buyer pays ₪216,000 at 8%.
Mortgage limits.Directive 329 caps LTV at 75% for a single dwelling, 70% for a replacement and 50% for an additional home. Banks lend cautiously on flats in buildings about to be demolished, so get pre-approval for the specific property.
Walk it at night.Some streets are quiet and green, others noisy and cramped. Visit in the evening before you choose a block.
Who it suits
Works well for
- Young families and couples who want central Jerusalem at below-Katamon prices
Harder to recommend for
- Buyers who need a lift, parking and a mamad today
- Anyone who dislikes noise, density and years of nearby building work
- Short-horizon investors, given the timing risk on renewal
- Families wanting a quiet, uniform suburban atmosphere
The verdict
The Katamonim have real strengths: a central location, San Simon Park, character and a mixed, welcoming community. Anglo families have discovered it for good reason.
But today's prices assume that renewal will deliver. Much of the stock is old and small, and the new towers will change the area's scale. Buyers need to check the exact status of the exact building.
Buy the location with confidence; buy the renewal story with a lawyer.
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