History of the Neighborhood: Arnona’s history begins in 1931, when it was established on a 13-dunam plot as a southern expansion of the Talpiot neighborhood. Founded by the Jewish Agency and the Jewish National Fund (Keren Kayemeth LeIsrael), it was planned according to Richard Kaufmann’s architectural vision from that era. Initially, Arnona was built as a neighborhood for workers with semi-detached houses.

In the 1970s, the eastern slopes of the neighborhood saw the opening of the Diplomat Hotel, built by businessman Chaim Sheff. At its construction, it was the largest hotel in Jerusalem, boasting approximately 300 rooms and featuring a swimming pool overlooking the Judean Desert.

During the 1980s and 1990s, Arnona underwent significant redevelopment. Most of the original buildings were demolished and replaced with luxury apartments, semi-detached houses, and villas. New residential buildings were also constructed in the open spaces between the original neighborhood and Hebron Road. Starting from the 2000s, land in the southwestern corner of the neighborhood was allocated, formerly used for the orchards of Kibbutz Ramat Rachel, and residential towers have since been erected there.

In 2002, the United States Consulate in Jerusalem purchased the former Diplomat Hotel complex. Plans to construct a new office building faced opposition from residents, but the consulate moved to the new building in the summer of 2010. Since 1991, the Diplomat Hotel has served as a retirement home for immigrants. In May 2018, the American embassy in Israel was relocated to the compound, and a new plan was approved for a future US consulate building on Hebron Road.

In February 2017, the Ministry of Interior approved the transfer of a 250-dunam area from the Mateh Yehuda Regional Council and Kibbutz Ramat Rachel to establish the Mordei Arnona neighborhood with 1,850 housing units east of the Arnona neighborhood. The plan includes dozens of rental apartment units and the construction of two hotels. In January 2021, a plan was approved to expand the neighborhood southeastward, including the construction of 450 apartments, public buildings, commercial areas, and a park in a 15-dunam area.

Today, the Arnona neighborhood is characterized by a diverse community, with residents from various backgrounds forming a broad and varied group. The neighborhood is experiencing ongoing revitalization with numerous planned projects to further develop and invest in new transportation routes, including the light rail, enhancing its sense of renewal and prestige. The architecture in the neighborhood is predominantly modern, with most buildings constructed as villas, cottages, and low-rise structures up to four floors. The land reserves are nearly fully utilized, and houses on the outskirts border Kibbutz Ramat Rachel.