Israel is often characterized by a significant housing shortage. With an annual supply of 30,000 new properties and a demand of 40,000 per year, the Jewish state shows only 105 housing units per 100 households; a ratio that is among the lowest in the developed world.
The Jewish Agency, which manages emmigration into Israel, is expecting immigration to Israel to rise to a staggering 100,000 in light of the worldwide Covid-19 pandemic, and subsequent economic slowdown.
Isaac Herzog, Chairman of JA, told a Israeli Government committee that Israel could expect to see some 250,000 new Jewish immigrants over the next three to five years – a marked increase on the 30,000 that it currently receives every year. This ofcourse is likely cause the recent stabilisation of house prices in 2019, to rise ongoing.
The main reason for the continued rise in house prices in the recent run up to 2019 is the supply shortage, due to low construction volumes. Other factors contributing to the house price boom have included the central bank’s expansionary monetary policies.
The Israeli housing market on a whole is stabilizing, weighed down by government cooling measures, the average price of owner-occupied dwellings in Israel rose by a meager 0.96% during the year to Q2 2019 (-0.25% in real terms), according to the Central Bureau of Statistics (CBS).
Invest in Israel real estate with help from an experienced team on the ground. Our Israeli Investment Real Estate partner, is based in Jerusalem, has extensive of clients in helping foreign investors buy property in Israel.
Investing in Israel real estate is complex and likely accompanied by large tax assessments for foreign investors. A vast majority of the land (93%) belongs to the state, administered by the land authority. The other 7% is privately owned by individuals and various organizations. On the other hand in the cities, where many foreign investors would want to buy property this is not the case, in cities like Jerusalem and Tel-Aviv for example much of the lands are private. It is possible to find privately owned land in the cities, especially those old ones, such as Tiberias, everything that existed before 1948.
Practically the first step in any real estate deal involving a foreign citizen is to have a real estate property lawyer check the legal status of the property.
Israelinvestment.org’s partner Real Estate law firm in Jerusalem has the expertise and experience supporting foreign investors to buy land all across Israel. Register your details below for a confidential discussion on how they might be able to help.
IsraelInvestment.orgs’ legal partners are based in Jerusalem. They provide a diversified legal team to help you process your investment.
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