The Blog

Discover and understand the real estate market in Israel. Our team will guide you in buying, selling, and renting property for all intentions and purposes.

Our Insights on Israel's Real Estate Market | Blog | Immo Israel

Our Insights on Israel's Real Estate Market

Looking to buy property in Israel as a foreigner? Find out how to secure a mortgage in Israel, including eligibility criteria, required documents, interest rates, bank options, and expert tips for a successful application.

Mortgage in Israel for Foreign Buyers – 2025 Guide

In recent years, purchasing real estate in Israel has become increasingly attractive to foreign buyers. This trend is driven by geopolitical changes, rising property demand, and the desire for secure investments. Whether you are an investor looking for a stable market or planning to relocate to Israel, the real estate sector continues to offer excellent opportunities.

However, obtaining a mortgage in Israel as a foreign buyer is more complex than for Israeli citizens. It requires a clear understanding of the specific requirements imposed by banks and financial institutions.

This guide covers eligibility criteria, required documents, recommended mortgage options, and essential tips to help you navigate the process successfully.

📌 Everything you need to know before applying for a mortgage in Israel – let’s get started! 🚀

Why Buy Property in Israel with a Mortgage?

✔ Property values in Israel increase by an average of 4% per year.
✔ Mortgage interest rates in Israel are relatively low compared to other countries.
✔ The Israeli real estate market is stable and in high demand.
✔ Housing supply is limited due to population growth and immigration.
✔ With 50% bank financing, rental income can often cover mortgage repayments.

Israeli banks offer mortgages to foreign buyers, but with stricter conditions:

✔ Maximum financing of 50% of the property's value (compared to 75% for Israeli citizens).
✔ Higher interest rates – it is recommended to compare offers to secure the best terms.
✔ A significant down payment is required.
✔ You must open a bank account in Israel.
✔ Signing must take place in Israel or be completed through a notarized power of attorney.

Required Documents for a Mortgage Application

To apply for a mortgage, you will need to provide:

✔ A valid passport and, if applicable, a local identification document.
✔ Proof of income for the last three years.
✔ Bank statements from your country of residence.
✔ A detailed declaration of assets.
✔ Certification from a local tax advisor confirming your income.
✔ Notarized translation of all documents into Hebrew or English.

Foreign buyers can choose from several mortgage options:

✔ Loans linked to a foreign currency (USD/EUR) to reduce exchange rate risks.
✔ Fixed-rate mortgages to protect against market fluctuations (check for early repayment fees).
✔ A combination of different mortgage types to balance financial risk.

Tax Considerations for Mortgages and Property Purchases in Israel

It is important to understand the tax implications:

✔ Purchase tax is applied based on the annual rates set by Israeli authorities.
✔ Tax obligations in your home country may also apply.
✔ Potential tax deductions between Israel and your home country (if a tax treaty exists).
✔ Mandatory tax reporting in your home country, if required.

1️⃣ Gather all required documents in your home country.
2️⃣ Translate and notarize documents (this may be done through the lending bank).
3️⃣ Open a bank account in Israel.
4️⃣ Submit the mortgage application directly to a bank or through a mortgage broker.
5️⃣ Wait for approval – the process is generally longer than for Israeli citizens.

Essential Tips for a Successful Mortgage Application

✔ Start the process as early as possible.
✔ Work with a mortgage broker specializing in foreign buyers.
✔ Consider opening an Israeli bank account before applying for a mortgage.

Banks Offering Mortgages to Foreign Buyers

✔ Major Israeli banks have dedicated departments for foreign clients, but not all branches offer these services. It is advisable to check availability in advance.

✔ Difficulty proving income → Providing proof of assets or making a larger down payment can help.
✔ Restrictions on international money transfers → Plan your transactions in advance.
✔ Language barriers → Use professional translation services if needed.
✔ Time zone differences → Schedule online meetings in advance to coordinate with Israeli institutions.
✔ Remote signing → A notarized power of attorney may be required.

🔹 A real estate lawyer specializing in purchases by foreign buyers (especially for second-hand properties).
🔹 An international money transfer service to reduce currency exchange fees.
🔹 Property insurance to protect against fire, water damage, and natural disasters.

Naor Zeitouni is the founder and CEO of Creditly Technologies, a fintech company specializing in mortgage solutions, risk assessment, and innovative banking technologies.

Using advanced technology, Creditly compares mortgage offers to find the most favorable financing solution for each client.

The company collaborates with leading real estate developers in Israel and assists foreign buyers in securing mortgages.

📢 Click the banner and leave your details for a Creditly representative to contact you.

Mortgage in Israel for Foreign Buyers: The Complete Guide

Want to invest in real estate and maximize your profit potential? Read the top experts' advice here at Immo Israel.

Investing in Real Estate | Blog Topic | Immo Israel

Read the articles on Immo Israel and find out everything you need to know about real estate in Israel as an Oleh Hadash making Aliyah!

Aliyah | Blog Topic | Immo Israel

Read comprehensive guides to the Israeli real estate market, written by the experts at Immo Israel, and make your house hunt as easy as possible!

Guides | Blog Topic | Immo Israel

Discover our partnership with REALTY BUNDLES, the innovative platform connecting Israeli investors to the North American real estate market with ease. Start investing with just ₪150,000 today!

Invest in North America with Realty Bundles and Immo Israel

We're thrilled to announce our partnership with REALTY BUNDLES, an innovative platform that offers Israeli investors seamless access to the North American real estate market with a starting capital of just ₪150,000.

Why Choose REALTY BUNDLES for Your Investment?

Unlock the North American Market: Tap into the economic growth of the U.S. and Canada by investing in handpicked, high-potential real estate projects.

Diversified Investment Model: Benefit from a "Bundle" approach, which spreads your investment across multiple properties to mitigate risk.

Transparency and Expert Management: Stay informed with real-time monitoring of your investments and enjoy the expertise of seasoned local professionals.

Flexibility Without Lock-In Periods: Withdraw your investment at any time with no long-term commitments.

Financing Made Easy: Take advantage of exclusive loan options through an Israeli bank, designed specifically to support your investment.

Don't miss out on this opportunity to grow your wealth by investing in promising real estate portfolios in North America.

👉 Click here to invest with REALTY BUNDLES and Immo Israel

Start building a diversified real estate portfolio today with trusted professionals at your side!

Purchase tax reduction in Israel: Simplify your settlement with favorable rates for new immigrants and save significantly on your first real estate purchase.

Reduction of Purchase Tax: A Boost for New Immigrants in Israel | Blog | Immo Israel

Since July 29, 2024, new Israeli legislation has been providing significant tax benefits to new immigrants (olim) on the purchase of their first property in Israel. This reform aims to lighten the financial burden on olim hadashim by significantly lowering the tax rates on their initial real estate purchase.

<table> <thead> <tr> <th>Rate</th> <th>Price Range</th> <th>Apartment Details - Example</th> <th>Example for Oleh Hadash with Calculation</th> <th>Example for Israeli with Calculation</th> <th>Links to Listings</th> </tr> </thead> <tbody> <tr> <td>0%</td> <td>Up to 1,980,000 NIS</td> <td>2.5 rooms in Bat Yam - Price 1,790,000 NIS</td> <td>1,790,000 NIS x 0% = 0 NIS</td> <td>1,790,000 NIS x 0% = 0 NIS</td> <td><a href="https://www.immoisrael.com/listings/2-5-room-apartment-sale-155-balfour-street-bat-yam" target="_blank">Bat Yam</a></td> </tr> <tr> <td>0.5%</td> <td>Between 1,980,000 and 6,000,000 NIS</td> <td>5 rooms in Netanya - Price 2,980,000 NIS</td> <td>(2,980,000 - 1,980,000) NIS x 0.5% = 5,000 NIS</td> <td>(2,980,000 - 1,919,155) NIS x 0% + (2,276,360 - 1,919,155) NIS x 3.5% + (2,980,000 - 2,276,360) NIS x 5% = 47,684 NIS</td> <td><a href="https://www.immoisrael.com/listings/5-room-apartment-sale-harav-yosef-rivlin-street-netanya" target="_blank">Netanya</a></td> </tr> <tr> <td>8%</td> <td>Between 6,000,000 and 20,000,000 NIS</td> <td>4.5 rooms in Tel Aviv - Price 9,750,000 NIS</td> <td>(9,750,000 - 6,000,000) NIS x 8% = 300,000 NIS</td> <td>(1,919,155 - 1,980,000) x 0% + (2,276,360 - 1,919,155) x 3.5% + (5,872,725 - 2,276,360) x 5% + (9,750,000 - 5,872,725) x 8% = 502,502 NIS</td> <td><a href="https://www.immoisrael.com/listings/luxury-4-5-room-apartment-sale-9-shaul-avigur-street-tel-aviv-yafo-2" target="_blank">Tel Aviv</a></td> </tr> </tbody> </table>

Tax benefits are only applicable if the property is used as a primary residence. Investment properties do not qualify for these reductions. Moreover, properties valued over 20,000,000 NIS do not benefit from these reduced rates. The Israeli Tax Authority has also strengthened proof requirements that the property is being used as the primary residence to prevent misuse.

This aid, approved by the Knesset's Finance Committee, will take effect on August 15. It applies to new immigrants who have immigrated within the last seven years and have not yet purchased housing. This measure primarily aims to support newly arrived young couples, taking into account price differences from their home countries. At its peak, this assistance could reach approximately 175,000 shekels for olim.

The Israeli government is committed to facilitating the integration of new immigrants. This tax reduction sends a strong signal encouraging Jews worldwide to settle in Israel. Finance Minister Bezalel Smotrich emphasized that the State of Israel is fully committed to supporting new immigrants by making their settlement easier. The Minister of Immigration and Integration, Ofir Sofer, noted that this measure assists newcomers in adapting and encourages those considering making their Aliyah.

The reform of the purchase tax for new immigrants marks a significant advancement in the integration of olim into Israeli society. By making property purchases more financially accessible, this legislation promotes Aliyah and the development of new communities in Israel. Purchasing property in Israel is now more accessible than ever for new immigrants.

Discover our real estate offerings on our search page. Our platform offers a vast selection of properties tailored to all budgets and needs, directly in English. Use our filters to quickly find the apartment or house of your dreams.

Reduction of Purchase Tax: A Boost for New Immigrants in Israel

Monthly real estate statistics: prices, sales, and trends. Key insights for better understanding. Explore our dedicated category for real estate data in Israel.

Statistics | Blog Topic | Immo Israel

Navigate Israel's unique property buying process: Learn about the binding Promise to Purchase. Dive deeper into our guide for smart purchasing in Israel.

Successfully Purchasing Real Estate in Israel: The Purchasing Process

The steps of the purchase process in Israel are different from those in the US, so it is very important not to sign any document before discussing the transaction with your lawyer.

When you buy a property in the US, the first step is usually to sign and send the owner an offer to purchase. This document contains conditions precedent that allow you to cancel the contract depending on your financing plan, if, for example, the bank refuses to grant you a loan.

In Israel, the process is totally different! Once you have decided to buy a property, you do not have to sign an offer to purchase. However, you should be very careful, because the seller (or his real estate agent) may ask you to sign a Promise to Purchase (Zichron Dvarim).

The problem? In Israel, there are no conditions precedent, which means that once a Promise to Purchase is signed you are committed to buying the property at the price detailed in the document, even if flaws are discovered in the property after signing. Therefore, it is crucial to pay close attention to anything you sign - the Promise to Purchase is a legally binding document, even if it is just a piece of paper with a few handwritten sentences, signed by the seller and the buyer. Furthermore, once this document is signed it must be declared and will be subject to taxes.

Another important thing you should know is that there is no need to sign a Promise to Purchase or any other offer when buying a property, because the contract already contains all the information necessary for the transaction. In fact, the final deeds of sale are already signed by the parties when the purchase contract is signed, which also does not include a suspensive clause related to the loan. These deeds will need to be registered once the payment and handover of the keys have taken place.

When you buy property through a real estate project under construction from a developer (Kablan), the procedures may be different than with a classic purchase. In these cases it is very common to be asked to sign an offer to purchase or a promise to purchase, along with a deposit, while waiting for the purchase contract to be finalized. In these situations it is crucial to consult a real estate lawyer to ensure that you are protected from potential risks. Your lawyer will be able to ensure that the document you sign is voidable, that your deposit is placed in escrow and refundable under any circumstances, and that you are not subject to any unexpected tax liabilities.

Don't forget! Since there is no suspensive clause in Israel regarding financing, you must make sure that your mortgage has been authorized before signing a contract!

Once the negotiations are over, it is up to your lawyer to prepare the compromise sale based on the agreements made between you and the seller.

The Deed of Sale in Israel includes the details of the property as they appear in the Israeli land register (Tabu). The real estate contract in Israel also details how payments will be made and staggered according to an agreed upon schedule. It may also include consequences for failure to comply with any of the seller's commitments regarding the property, which may affect the payment schedule and the compensation required as a result. Other aspects of the agreement to sell in Israel may include issues that the seller must resolve, such as unpaid fees related to the municipality or utility companies.

The signing of the sales agreement will usually take place between 1-2 weeks following the negotiations, at the owner's lawyer's office, and usually in the presence of the realtor (who eagerly awaits his stamp once the contract is signed). Both parties then sign the contract as well as numerous documents related to the taxation of the property, such as the purchase tax (mas rechisha) and the capital gains tax (Mas Shevah). The seller also signs documents to ensure that there are no hidden debts or problems with the property, while the buyer declares that he has seen the apartment and is buying it "as is". The parties also sign a warning notice (Hearat Azhara) and an irrevocable power of attorney (Yipui Koach Bilti Chozer). In addition, your lawyer will register a note in the land registry indicating that you are in the process of purchasing the property, so that the seller cannot sell the property to anyone else. Finally, the buyer pays the down payment for the property by giving a bank check to the seller who attests the receipt of this payment by signing a confirmation of receipt.

In Israel, a property sale is typically recorded by one document, as is the case in the United States, i.e. you officially become the owner as soon as the deed of sale is signed at the lawyer's office.

The various costs associated with the real estate transaction are typically divided equally between the buyer and seller, according to the terms specified in the sales documents.

Before your planned date of entry to the property, you must, together with the seller, sort out the transfer of the various taxes on the property, including water, gas, electricity, and the property tax (Arnona). Some of these services can be done online, while others require an appointment and the presence of both you and the seller. This may also differ depending on the city, as in different locations these services are offered by different companies.

In order to transfer electricity, water and gas services, you need to report the reading on the relevant meters on the date of entry to the property. This can also be done a few days in advance if the property is empty and you have agreed with the seller. In any case, you must specify the date of entry to the property and enclose a copy of your contract.

The property tax is split between you and the seller based on the date of entry. Since the property tax is paid every two months, the seller may have already paid the first month after your arrival. The seller will receive a refund from City Hall and it will be your responsibility to pay this month.

Concerning the condominium charges, the seller is obliged to pay all fees until your date of entry to the property. 

Have you moved into your new property? Mazal Tov! Don't forget to go to the government website to update your address. It's important to do this because you will need to receive an updated slip (appendix, "Sefach") for your ID card with your new address.

You are now ready to purchase property in Israel. For more information on each step of the buying process, visit our blog! There you can read many articles about selling, buying and the Israeli real estate market in general.

The Immo Israel team is at your service for any questions or queries, just fill in our contact form and we'll be sure to help.

Successfully Purchasing Real Estate in Israel: The Purchasing Process (Part 5)

Navigate property buying with our financial planning guide. Understand total costs beyond the purchase price, including taxes and renovations. Learn more in our blog.

Successfully Purchasing Real Estate in Israel : Financing

Don't let yourself be taken by surprise, plan the acquisition of your apartment efficiently by factoring in all related costs!

Before determining the sum you wish to contribute out of your personal savings (down payment) and the sum you can obtain via a mortgage loan (Mashkanta), it is crucial to first understand the total sum necessary to purchase the apartment you desire. It is important to take into account not only the purchase price, but also related expenses such as notary fees, taxes, and possible renovation costs. In order to avoid unpleasant surprises that may arise during the purchasing process, it is important to create a financial plan in advance.

Here is a summary of the expenses to consider:

The property price is, of course, the main expense. To easily compare prices of properties you are interested in, use our advanced search engine or contact us directly.

The purchase tax is the second largest expense to be expected in general. The tax sum can vary between 0 and 10% of the price of the property. Tax discounts can sometimes be obtained, including for new immigrants (Olim Hadashim).

Renovations or work to be done on the property you wish to buy may also require a higher budget than you had initially planned. It is up to you to determine if it is really necessary and, if so, to evaluate the total cost of the work.

The construction cost index (Madad Tshoumot Bniya) is another factor that can impact your budget when buying a new property from a contractor (Kablan). This index is linked to the cost of incoming raw materials needed for construction and is constantly changing. The indexation can have a significant impact on the final price of the property, increasing the cost by 4 to 5%.

Legal fees are also foreseeable expenses upon purchasing a property. These fees typically account to 0.5-2% of the price of the property, excluding VAT. In Israel, your lawyer's job is to protect your interests and perform notary functions: legal verification, contract drafting, tax declaration, registration of property, and assistance with signatures. It is therefore crucial to include legal fees in your budget from the get-go, so as not to be caught off guard. 

Agency or real estate agent fees are not to be ignored, unless you are adamant on finding a property on your own. If you have used the services of an agent or agency, you will have to pay him a commission of up to 2% of the purchase price, excluding VAT.

Finally, don't forget to include moving expenses in your overall budget, especially if you are moving from abroad. Furnishing costs are another essential expense to factor in when relevant.

Begin building your financial plan by calculating your own contribution, a crucial step in purchasing property!

A down payment is the sum of money you pay up front when purchasing a property. It can be paid through a variety of sources, such as savings, donations, an inheritance, the resale of a property, or a share of your company's profits.

The Bank of Israel limits mortgage sums in accordance with the price of the apartment purchased, which means that your own contribution must supplement the rates set by the Bank of Israel:

For the purchase of a first property, the Bank cannot lend more than 75% of the property's cost, which means that the own contribution must amount to at least 25%.

For the purchase of a new property combined with the resale of an existing property, the minimum own contribution amounts to 30%.

For the purchase of a property for investment, or taking on a mortgage for any other reason, the own contribution amounts to 50%.

Loans for the acquisition of discounted properties can amount to 90% or more, and in some cases require down payments of only 60,000-100,000 NIS.

If you are abroad or if the funds you need for the down payment are not in Israel, there are services that allow you to transfer your money in a simple and secure way. Read more in the following article.

Your own contribution can be supplemented by subsidized loans or tax reductions, depending on your status in Israel.

1. Reduced Interest Rate for Mortgage Repayment

In Israel, there are two types of real estate loans: mortgages granted by the State, called "Mashkanta Memshaltit", and by various banks "Halva'ot Bankaiyot".

Olim Hadashim can obtain mortgages to finance the purchase of a home if they meet the eligibility criteria and have a valid "Benefits Booklet" eligibility card (Teudat Zakaout). The loan sum is determined according to a points system based on family situation, age, time spent in Israel, etc. Olim Hadashim who have completed military or civilian service are eligible for additional assistance. Olim Hadashim with disabilities may also receive additional points based on their type and level of disability.

People who have already received a government mortgage can apply for a top-up loan from a bank. We highly recommend comparison of the loans offered by different banks - each have different terms and interest rates, which can sometimes be negotiated in order to get the best possible terms.

2. Discounted Purchase Tax (Mas Rechisha) For Olim Hadashim

Olim Hadashim are eligible for a reduced purchase tax on real estate purchased in Israel within the first 7 years of aliyah. In order to receive this discount, they must submit a request to the property tax department (Arnona) of the city where the property is located and provide the required documents.

3. Discount for Participants in the "Mechir LaMishtaken" Program

The Ministry of Construction and Housing in Israel regularly launches discounted housing programs such as "Mechir LaMishtaken" or "Mechir Matara" in order to help people purchase affordable housing. These programs may include financial incentives for eligible buyers, as well as restrictions on the resale and use of the purchased property. These programs are open to married or cohabiting couples, single, widowed or divorced individuals over the age of 35, single parents with a child under the age of 21, and single people with disabilities who are 21 and older. It is important to check the eligibility criteria for each program offered.

As you can see, it is essential to be well informed in order to receive all possible financial assistance. Do not hesitate to contact us, we at Immo Israel will be happy to guide you in your purchase.

Taking out a loan can be a real headache when you don't understand the workings of the Israeli loan system, especially when compared with systems used in other countries.

Unlike the UK, where debt capacity is limited to 33% of your monthly income, or the US, where it is limited to 28% of your monthly income, in Israel the bank allows a monthly mortgage repayment of up to 50% of your salary. The time limit for repayment of the loan is 30 years maximum.

Note that there is no such thing as a zero interest loan for the purchase of property. In order to obtain a loan you must provide proof of your income, which will allow the bank to calculate your repayment capacity. We recommend negotiating the loan terms with different banks or with the help of a broker or lawyer. As mentioned above, Olim Hadashim can benefit from a fixed rate loan of 3% for part of the loan. However, it is important to compare different bank loan offers, as it is possible that you will be offered a better rate as a result of negotiation and competition between banks. It is also important to obtain the loan agreement before signing the purchase contract because, unlike in the US, loan refusal is not a suspensive clause. 

It is also possible to borrow money from a US bank in order to pay for a property in Israel, provided you have a property in the US to guarantee the loan.

Be careful! If you are going to take out a loan to buy a property, it's extremely important to obtain loan authorization from the bank regarding the amount you wish to borrow, before you even start viewing options. This authorization is called "Ishour Ekroni", and consists of the bank's hypothetical agreement to the amount you wish to borrow.

Would you like to be contacted by a English-speaking mortgage advisor? Send us a message through our contact form.

Sell or buy first? That's the question to ask if you wish to finance your purchase by reselling a property. Each option has advantages and disadvantages, so it's up to you to decide what order is right for you.

By buying first, you guarantee yourself a home; you won't have to rent an intermediate home or move back in with your parents after leaving your current home. However, in this case it is very important not to overestimate the price of your property and to carefully examine the market beforehand so as to avoid purchasing a property that you won't be able to afford. To secure your financing, you must have enough for your own contribution (minimum 30% as explained above). This can come from your personal savings, bank loans, or bridging loans (Halva'at Gishour), which are granted for short periods of time and will need to be repaid in full once your property is sold.

Although this option may seem more stressful at first, it does have some advantages. By selling first, you will receive a portion of the sale proceeds ahead of time, thus providing a solid financial base for the purchase of your next home. You will also know exactly how much money you have available for the purchase of your new property. The trick in this case is to proceed with a "long sale", specifying that the property will be available within six months, thus buying you time to search for a new property. However, you must be careful to manage the money you receive and avoid spending it in an untimely manner.

Successfully Purchasing Real Estate in Israel : Financing (Part 2)

Learn more about the Israeli real estate market before making Aliyah or buying property. Understand market differences and invest wisely. Dive into our blog for insights and tips.

Successfully Purchasing Real Estate in Israel : Define Your Project

The right time to buy is when you are ready!

Before making Aliyah or buying real estate in Israel, it is important to understand the Israeli real estate market. Indeed, property prices in Israel do not reflect American or European market prices, so you may be shocked when comparing the budget required to purchase property in Israel.

One thing is certain, the prices of the Israeli real estate market are constantly rising, no matter where you live. So, if your budget allows it and you have well defined your project and your expectations, don't wait! The real estate prices found one, two or five years ago are much lower than those of today and can be expected to continue to rise in the years to come.

Don't wait any longer! Explore all the real estate listings available in Israel under the "property search" tab, here at Immo Israel.

Once again, it all depends on your project and what you want to do with your property. If you want to invest and rent out your property in order to receive a monthly rent, your preferred location will necessarily be different than if you want to buy an apartment or a house in which you are going to live. A good investment for a rental could, for example, be close to a university, while your living space must correspond to your family and professional situation.

A common mistake in buying a property in Israel is to fall in love with a place where you like to spend your vacations... but which is impractical for everyday life! You love coming to Tel Aviv during the vacations and walking along the Tayelet, eating ice cream and sunbathing by the sea... This does not necessarily mean that living in this place in Israel will be practical for you on a daily basis, between the incessant traffic jams, the real estate prices in the Center of Israel (Gush Dan) and the very high cost of living in general. 

Our little country is more than just the big cities you know and always hear about! Don't be too quick to decide where in Israel you are going to live; explore different horizons that might hold some nice surprises.

In order to decide what property to buy, you need to decide what's more important to you - the type of property or the location.

If you absolutely want to live in a private house, look for properties in the suburbs rather than in the center of a large city. If, on the other hand, you prefer to be close to specific places such as your work, schools, and shops, and require services such as public transportation, an apartment in the city will be much more practical and easier to find.

Many additional criteria besides location factor in, no matter which country you are looking to buy in. Typically, an apartment requires less maintenance because part of the building is managed by the condominium (meaning no roof to redo or facade renovations, etc.). Of course, the outdoor space in the case of an apartment will almost always be reduced compared to a house, making the neighborhood an even more important factor.

A house is often considered the ideal option for families with children because they usually offer more space and a garden. Owning a private house means more freedom and autonomy, but it comes with additional responsibilities in terms of maintenance and management.

Which property should you choose?
Go to our search engine and choose the criteria and filters that suit you!

Successfully Purchasing Real Estate in Israel : Define Your Project (Part 1)

Learn how to estimate property prices in Israel accurately for effective negotiations. Discover methods for fair market value assessment.

Successfully Purchasing Real Estate in Israel: Estimate and Negotiate

Estimating the real price of a property is not an easy task. Owners are looking to sell at the highest possible price while buyers are looking to buy at the lowest possible price.

Estimating the price of a property can be difficult for buyers without prior market research. Estimating the price correctly is important for negotiations. There are several ways to get a fair estimate: 

To get an accurate estimate of the price of a property, you can check with the real estate agent you are working with to see if he or she thinks the property matches the market price. If your real estate agent is professional and you trust him or her, this option may be sufficient.

An alternative is to use a professional appraiser (Shamay). The Shamay will investigate the property, gathering information from the local authorities, checking the planning status, property rights, building additions, property eligibility, and any transactions in the area. He will then provide a full report on the property, including information on the prices of similar properties in the area, giving you a more accurate idea of the real value of the property.

For buyers who do not wish to use an appraiser, it is possible to estimate the price of a property on your own, primarily by comparing the property to one as similar as possible. You can check the apartments that have been sold in the same building, but keep in mind that the apartments may be different in terms of size and layout.

It is also advisable to visit our website to compare prices and criteria of similar properties in the same neighborhood, or to visit the government real estate website to get information about all the properties sold at the chosen address and in the surrounding area. You will also find a lot of information about the surroundings of the property.

The Immo Israel expert opinion: almost everyone takes a used car for a technical checkup before purchasing it and this is even more important when buying a house! Purchasing a property with the assistance of an expert in the field will help you avoid unpleasant surprises in the future.

Good news: Since 2013, the country has made sales around a given address accessible to all individuals!

To find them, go to the governmental real estate website and enter (in Hebrew) the address of your choice. You can then choose the number of rooms in the homes you wish to compare.

Once you have the recent sales data, select properties that have similar characteristics to the one you want to value (type of property, size, floor, year of construction, etc.). Then, calculate the average price per square meter for these sales to get an estimate of the selling prices in the neighborhood.

Here at ImmoIsrael.com we have made things even easier - all the listings already include the price of the property per square meter! This information has the merit of being precise and indisputable: you can use it to negotiate the price of your future property.

Certain property characteristics are unanimously valued, regardless of individual preferences.

Using the average sale price of property in a certain neighborhood you can establish a price range for properties in that neighborhood and know if an offer is relatively fair, low, or high.

Various characteristics of a property, such as the presence of an elevator or location on a high floor, can have an impact on its overall value. For example, an apartment in a building with an elevator may be considered more valuable and add a 10% increase to the average price, while an apartment on a high floor in a building without an elevator may decrease its value between 10-15%.

It is therefore important to situate the property on a scale of minimum and maximum value, after factoring in all its specific characteristics. The following table provides an estimate of the various capital gains and losses to be taken into account concerning the property you wish to acquire.

By using the tips we've given you to evaluate property prices, you'll be better prepared to begin negotiations.

If you live in Israel, you have probably realized by now that US and Israeli mentalities are somewhat different... Here, negotiations are not done in writing but rather face to face, either via a real estate agent or with the owner directly.

The experts at Immo Israel have several tips to help you through the different stages of the negotiation: 

First of all, always be respectful and leave your ego at home! Remember that the seller is also a human being and that anyone with a wounded ego will be less likely to sell you his property. Instead, try to warm up to the seller, and take the opportunity to ask some important questions - why are they selling the property now? How long has the property been on the market? How eager is the owner to sell?

Do not discuss the price of the property over the phone and not before you have visited the property at least once! You must first decide whether you are really interested in the property and whether it suits your needs. Begin price negotiations after you have seen and asked all your questions about the property and its surroundings.

If the property belongs to a new project and the negotiation is with the contractor - keep in mind that the negotiation will not necessarily be for a price reduction but could also include improvements to the property, such as a more modern kitchen or tiles that cost more than the basic ones included. This type of negotiation also works for second hand properties. You can, for example, ask to bring forward the date of entry or offer a larger down payment upon signing the contract, in exchange for a discount or in return for the furniture and air conditioning already in the apartment.

Don't forget to base your negotiations on the data you gathered whilst estimating the property's price, whether you did so with the help of an appraiser, real estate agent, or by yourself. Use your knowledge to argue your case.

Successfully Purchasing Real Estate in Israel: Estimate and Negotiate (Part 4)

Discover verified properties on Immo Israel with detailed listings in English, Hebrew, French, and Russian. Simplify your search for the perfect home in Israel.

Successfully Purchasing Real Estate in Israel: Find a Property

These days, roughly 95% of buyers look for property online!

Here at ImmoIsrael.com we offer you the opportunity to discover real estate listings, advertised by both homeowners and real estate agents. It is a point of honor for us to check each and every ad before authorizing their publication, in order to guarantee the best experience possible. We believe it is your right to receive all important details ahead of time; we only authorize listings that include high-quality photos, the asking price, and a detailed description. Moreover, our team translates each listing into four main languages: English, Hebrew, French, and Russian. This allows you to easily search and find your ideal property, in the language you are most familiar with.

In order to avoid missing any of the new real estate ads published daily on Immo Israel, we highly recommend creating a personalized email alert including the property criteria you desire. This will allow you to receive relevant listings straight to your inbox, as soon as they are published, saving you much time and energy. However, it is important not to be too restrictive in your search criteria so as not to miss out on properties that could suit you perfectly.

There are many other real estate search platforms in Israel, such as Yad2, real estate Facebook groups, Madlan, and others. However, none of them meet our high standards for posting listings, and it's extremely easy to get lost in the multitude of incomplete ads. In addition, none of these sites offer listings in English, and most of the listings on Facebook are advertised by realtors instead of directly by the owners.

Search for your ideal property according to YOUR criteria on the following page!

When you start looking for a property to buy in Israel, one of the first questions you should ask yourself is: do I want to use the services of a real estate agent or agency to help me in my search?

Indeed, whether you are in the US or in Israel, finding a home for sale by owners is becoming increasingly rare and the easiest way to succeed nowadays is through an agent. This in turn causes even more owners to publish their property via real estate agents. However, this is true only in terms of selling real estate; most of the properties published by owners are for rent, meaning it is quite easy to find a property to rent without using the services of an agency.

Using a real estate agent service has many advantages: he or she will save you hours of searching for properties that meet your criteria, will set up appointments with the owners, and will often arrange visitation to several properties in one day, thus saving you time. However, it is important to check that the agent has a real estate license (Rishayon Tivuch) before visiting a property with the agent and signing a contract. An experienced and competent agent will be able to guide you efficiently in your search and will accompany you in the first stages of your purchase. It is also important to take into account the costs associated with this service when budgeting for a new home. Note that these costs may be offset by the benefits you get by using the services of a real estate agent.

Click here for the list of all English-speaking real estate agents on Immo Israel.

What should I check during the visit? What questions should I ask? What details should I pay attention to?

Going to see a property you are interested in is extremely important and allows you the opportunity to verify many important elements. These include:

The general condition of the property: look for signs of wear and tear or deterioration.

The distribution of the rooms: note optimization of the area and any "lost" spaces.

Brightness and exposure: take note of the sunlight and the view.

Noise and insulation: listen to outside noise and check for adequate insulation. Are you near train tracks? A school?

Don't forget to check the condition of the ceiling, walls, and windows.

You should also check if the apartment has a private parking space registered in the land registry (Tabu), as well as any storage area or unit (Mahsan).

Another thing we highly recommend is to meet other people in the building and to look at the condition of the common areas to get an idea of the condominium's quality. 

If you are interested in the property, it is always a good idea to make a second visit at a different time during the day to check if you are still interested.

Remember that when you visit a home, there are additional criteria to consider that may be relevant: How big is the yard? Is it well maintained? Also check the roof, the facade, the walls, etc., because if there is a problem after the sale it is up to you to finance the entire repair.

Don't forget that it is important to organize your visits well to avoid confusing the different properties visited. Our advice is to create a file for each property visited, noting the address, the owner's contact information, and recording notes during the visit. It is also important to take many photos and to file them as soon as possible to avoid mixing them with those of other visited properties.

Successfully Purchasing Real Estate in Israel: Find a Property (Part 3)

Explore Israel's housing price trends for May 2024 on the Immo Israel blog. Get insights into average transaction prices, district comparisons, and the most and least expensive cities. Stay informed with expert real estate updates.

Housing Price Trends in Israel - May 2024

Welcome to the Immo Israel blog! In this post, we'll delve into the housing price trends in Israel for May 2024, highlighting data from March and April, and comparing it to the same period in the previous year. Read on for insights into average transaction prices across the nation and by specific districts, along with a spotlight on the most and least expensive cities in Israel.

The Israeli Central Bureau of Statistics (CBS) reports a 0.9% increase in transaction prices from March to April 2024, up from the increase observed between February and March 2024. This moderate rise signals a steady recovery in prices following a period of stagnation throughout 2023.

Figure 1: Monthly Percentage Change in Housing Price Index

Please note: Data for the last quarter is preliminary, pending additional reported transactions. This disclaimer applies to all subsequent graphs.

Over the year, housing prices in Israel increased by 2.1% from March-April 2023 to March-April 2024, marking a return to growth after a price drop in the latter half of 2023.

Figure 2: 12-Month Percentage Change in Housing Price Index

The variations in housing prices by district compared to the previous period (March-April 2024/February-March 2024) show diverse trends:

Annually, all regions recorded price increases, with Haifa District seeing the highest at 6.6%, followed by the North District at 3.7% and the South District at 3.6%. Both Jerusalem and the Center Districts noted more modest rises of 1.9%, and Tel Aviv District experienced a minimal increase of 0.1%.

The national average transaction price in the first quarter of 2024 was 2,171,000 NIS, an increase from the previous year. Here’s a breakdown of average prices in major cities: