Having worked in Israel’s real estate industry for 20 years, I’ve gotten myriad questions about the market here. Because the vast majority of our clients are Anglos, many of these questions relate to the differences between the real estate scene in both countries or to understanding how things work in Israel. Let’s dive into some of the most common questions.
Why don’t prices ever decrease in Israel?
Prices in Israel rarely decrease due to:
- Limited land for development
- Restricted supply of new housing permits
- Growing population due to births and aliyah
- Delayed construction due to supply and labor issues
During slumps, you might get better terms for unbuilt properties, but prices themselves don’t go down. Even during the past year, in which we had wars on our northern and southern borders and eruptions in Yehuda and the Shomron, prices rose 7.8%.
What’s the minimum amount of money I’ll need to buy something in Israel?
To buy property in Israel, you generally need at least $250,000. For this amount, you can invest in areas like Tzefat, Teveria, or Nahariya, all ideal for short-term rentals, as they attract tourists both from within the country and from outside. Cities like Bat Yam and Hadera are good investments for long-term capital growth. They’re located along the coast, they’re on the train line, and they’re near major employment centers.
What’s “buying on paper”?
This term refers to acquiring real estate that’s either in the planning stages or under construction, but not yet completed. The buyer gets a completely new property, usually saves money, and has more options for customization. Some people are wary of on-paper plans because of construction delays or “stories” with dishonest developers or lawyers. Of course, we always carefully vet the developers and lawyers we work with, so our clients do not need to worry about this. Delays, unfortunately, are out of our hands.
What’s “closing” in Israel?
In the States, "closing" means you finish buying your home and get the keys. In Israel, "closing" happens earlier, when you sign the contract and begin making payments. You get the keys only after making the final payments.
What are some unusual or different locales you see people interested in these days?
We’re seeing increasing numbers of Anglos looking into (and buying in) Karmei Gat, a neighborhood of Kiryat Gat. This is an exciting option because it’s outside the usual Jerusalem-Ramat Beit Shemesh belt that religious Anglos tend to stick to. Karmei Gat has beautiful newly constructed projects and a buyer can get a larger place than he would for the same money in Jerusalem or RBS. Karmei Gat is in a great location for those commuting to Beer Sheva or Tel Aviv, and there is a lot of local shopping. There’s also infrastructure for observant Jews.
The new, in-progress International Quarter, in the Lod area, is another riveting project. Located minutes from Tel Aviv, this beautiful, modern neighborhood is going to provide more affordable family housing in the center of the country. Of course, the neighborhood’s demographic remains to be seen, as it’s still not completed. But this is an excellent opportunity for investors.
When’s the best time to buy?
The best time to buy is always now.
Why?
We started this Q&A off with a question about why prices never decrease. Seeing as that’s the case, it’s better to buy now than wait until they go up more!
We always advise our clients to buy something and establish a foothold. They can sell and buy something more appropriate later on but at least they’ve secured some property in the meantime.
How can I learn more about buying in Israel?
Navigating real estate transactions in Israel requires understanding the terminology, processes, and dynamics involved – and, of course, having trustworthy professionals to guide you.
The Israel Real Estate Expo, to be held February 16-17 in Surfside and Boca, is your opportunity to meet with top industry experts from Israel. Enjoy the artisanal culinary experience of Pizza Biza while you meet brokers, designers, architects, real estate lawyers, finance professionals, and property managers all under one roof. In addition to all these, many of my team will be there to address your questions about neighborhoods, new developments, investment hotspots and more. Our partners in this endeavor, the Brud Group, will be on hand to discuss property management, for those looking to invest or buy vacation homes. They are managing an extensive portfolio in Jerusalem, including many of the boutique properties in the prestigious Jerusalem Estates, and will be an asset to anyone interested in pursuing this avenue.
Join us! For free registration click here or more info,or +1.732.806.0816.
This article was written in cooperation with The Getter Group.