In recent months, the Israeli real estate market has experienced a notable increase in acquisitions by foreign residents, particularly in cities like Beit Shemesh and Jerusalem. This trend is primarily driven by an increased desire to connect with the Jewish State and by concerns over rising antisemitism worldwide.
According to Ministry of Finance data, in September 2024, foreign residents acquired 254 apartments in Israel, representing a 119% increase compared to the same period the previous year. This is the highest level since July 2022.
These acquisitions are often driven by Jewish buyers wishing to strengthen their connection with Israel and secure a potential haven amid growing tensions in their home countries. For example, Marc and Yael Azran, residents of Maryland, recently purchased an apartment in Beit Shemesh, expressing their desire to actively participate in the history and destiny of the Jewish people.
For potential buyers, it is essential to consider several practical aspects. Additional costs related to the purchase, such as acquisition tax, attorney fees, and conversion costs, can represent approximately 12% of the property price. Furthermore, Israeli banks generally offer financing up to 50% of the price for foreign buyers.
In terms of location, cities like Jerusalem and Beit Shemesh remain popular choices. However, interesting options also exist in peripheral areas where prices are more affordable.
To ensure a secure transaction, it is strongly recommended to surround yourself with competent professionals, such as real estate specialized attorneys and mortgage brokers.
In conclusion, despite certain challenges, the Israeli real estate market offers attractive opportunities for foreign buyers wishing to invest or establish a residence in Israel. Careful planning and thorough understanding of the market are essential to make the most of it.
