Shopping Mall Sprawl Hurting City Businesses in Israel

Historic downtowns in Israel are struggling against the growing tide of suburban American-style shopping malls that are developing on the outskirts of town.

1 minute read

August 26, 2009, 11:00 AM PDT

By Nate Berg


The development style has grown in popularity, with hundreds of shopping malls opening across the country -- mainly in suburban and exurban locations. Small businesses within the central cities are struggling to stay afloat.

"Beer Sheva, also known as the capital of the Negev and home to 186,000 Israelis, is representative of a wider trend in suburban development in Israel, which is fast becoming the California of the Middle East in terms of commercial real estate. Until the 1990s, the Israel Land Administration locked away nearly all non-urban land as agricultural, with stiff restrictions for building on it. But after a million immigrants from the former Soviet Union arrived that decade, the ILA softened the rules. By 2004, 121 exurbs, called "community settlements," were up and running, served by gas stations, supermarkets, and shopping centers built legally and illegally on farmland. Israel's first mall went up in a Tel Aviv suburb in 1986. Today, 145 enclosed shopping centers and malls are listed on the online directory Israelmalls.net. And mall construction may soon accelerate thanks to a controversial reform passed in early August that will sell off some 200,000 acres of state-owned land (about three percent of Israel's total area) to private developers-a likelihood that most local shopkeepers in more central urban districts aren't happy about."

Thanks to ArchNewsNow

Tuesday, August 25, 2009 in Tablet

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 23, 2026 - Zachary Whalen

Passengers board an Amtrak train under a cloudy sky.

Amtrak, CN end decades-long dispute with eight-year agreement

The new operating agreement establishes an updated framework for the companies to work together, including processes to resolve disputes.

September 18, 2026 - Mass Transit

An Airo train driving towards the camera on a track. There is a forest behind it.

Northwest rail fans eager for Sept. 30 debut of Amtrak’s Airo fleet

Get ready for that new train smell and more seats. But they won’t go faster or run more frequently on the Cascades route in Washington and Oregon.

September 22, 2026 - Washington State Standard

A rendering of the proposed building, which is tall and highlighted in yellow to stand out from the surrounding buildings.

NYC to turn city-owned property into thousands of homes

The city has scheduled a public hearing regarding the development for October.

2 hours ago - Gothamist

The new busway. The pavement is painted red, indicating it as a bus-only lane.

Buses travel at 5mph along this route in NYC. The Bronx's first-ever busway looks to change that

Prior to the busway, buses on the Bx36 route traveled as slowly as 5 miles per hour.

3 hours ago - Mass Transit

People cross the street in downtown Pittsburg.

Pittsburg launches 'EZ permits,' aims for one-day turnaround for low-risk permits

The pilot ‘fast lane’ for permits is part of a bundle of modernization efforts for Pittsburg’s permitting process.

4 hours ago - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.

Senior Planner

City of Thousand Oaks

Community Development Director

City of Wisconsin Rapids

Professor of Urban Planning

Harvard University Graduate School of Design