The Jewish Chabad House or Nariman House was left in shambles by the terror attacks killing six Jewish nationals, including Rabbi Gavriel Holtzberg and his wife Rivkah, who owned the building and ran the house as a Jewish guesthouse and prayer house.
Chabad Movement members told CNN-IBN that the new Nariman House will serve as a memorial to those who lost their lives in the attack and as an educational centre.
The building will also retain as a synagogue and a soup kitchen, serving kosher food for visiting Jews.
The movement members said they hoped the rabbi's son, baby Moshe who survived the attack, would come to Nariman and carry on his parent's work.
Locals have given full support for the rebuilding of the house and one of the residents said, "We are happy they are rebuilding it. It sends a message that you can attack, but you can't break us."
"This is a kind of revenge for us," said another local.