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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

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When is the right time to invest or purchase real estate in Israel? Find out more now.

Buying Real Estate in Israel: Is Now the Right Time to Buy? | Immo Israel

Whether you are an investor or a new immigrant looking to move to Israel, buying real estate can be an exciting and rewarding project. However, before you take the plunge, it is important to understand the workings of the Israeli real estate market, including the best timing. 

Before beginning the process to purchase property in Israel, it is important to fully understand the workings of the Israeli real estate market. The prices of properties in Israel do not reflect the prices of the American or European markets, so you may be shocked when comparing the budget required for purchasing property in Israel.

The Israeli real estate market is constantly on the rise, no matter where you live, and real estate prices have risen dramatically in recent years. This is due to high demand, ever-increasing population density, and the real estate investment culture that has developed here. The prices of properties in large cities such as Tel Aviv, Jerusalem, Ashdod, and Netanya are typically higher than in areas further away from the center, such as Haifa in the north or Be'er Sheva in the south. The advantages in these areas is the wide array of interesting and affordable investment opportunities. However, as noted above, the entire Israeli market is increasing, adding a certain percentage to real estate prices around the country every year. 

As a result, the average price of real estate in Israel in 2022 increased by an average of 19% compared to the previous year. It is important to note that some cities are experiencing higher increases than others, such as Jerusalem, Haifa, and Ashkelon.

Investing in real estate in Israel can be a wise choice for several reasons. First, the high demand for housing in the country makes it relatively easy to find tenants, especially in strategic locations, such as business districts or neighborhoods surrounding universities. In addition, the annual return on real estate investments in Israel can be relatively high, especially in the suburbs where prices are more affordable. This can offer interesting opportunities for investors looking to make a long-term profit. Compared to real estate investment in Europe for instance, where prices are often higher and the rates of return are typically lower, real estate investment in Israel can offer attractive advantages and returns for investors seeking to diversify their portfolio.

If you are a new immigrant wishing to settle in Israel, buying an apartment or house can be an excellent choice to help ease your adjustment period. It can also be a wise investment for your future. Before taking the plunge, however, it is important to be familiar with the different regions and cities, as well as the types of real estate available, in order to understand what property will best suit your needs and budget. 

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 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 advice at Immo Israel - our little country has much more to offer than just the "English-speaking" regions you know and are used to hearing about! Don't decide where you are going to live in Israel before exploring other options; be open to new areas that may hold some nice surprises for you. 

When Is the Right Time to Buy a Property in Israel?

The right time to buy a property in Israel is when you are ready! If you have defined your plans and expectations, and have the necessary budget, don't wait. Real estate prices have risen considerably in recent years, and can be expected to continue to rise in the years to come. However, it is important to fully assess your financial capacity to avoid difficult situations in the future. 

In conclusion, buying real estate in Israel can be an exciting and rewarding project, whether you want to live there or merely invest. However, before taking the plunge, don't forget to carefully define your project and your financial plan, in order to avoid unpleasant surprises on your way to the Promised Land.

Using Immo Israel's advanced real estate search platform, you will be able to discover a large selection of quality real estate listings in English, offered by homeowners as well as real estate agents, throughout the country.

Buying Real Estate in Israel: Why and When?

Whether you're a new immigrant or investor, Immo Israel's guide to transferring funds to Israel for real estate will help you navigate the process with ease.

How to Transfer Funds to Israel | Immo Israel

Transferring funds to Israel in order to purchase real estate in Israel can be a lengthy and tedious process, due to the strict regulations imposed on international financial transactions. Banks and financial institutions are subject to close scrutiny to avoid illegal activities such as money laundering and terrorist financing. This can make the process of transferring funds complicated and time-consuming for people wishing to buy property in Israel from abroad.

Since Israel joined the Organisation for Economic Cooperation and Development (OECD) a few years ago, international bank transfers have been subject to even stricter regulations. Israeli banks must verify the identity of the customer and collect information about the transactions, such as the source of the funds and their intended use. The bank must ensure that the source of any funds transferred from abroad is legitimate and not connected to any illegal activities. In addition, before funds can be transferred, you are required to have to have a bank account in Israel in your name, which also requires certain documentation.

The documents required to make a transfer can vary between financial institutions. Israeli banks often require that documents submitted be translated into Hebrew (by a sworn translator). Commonly requested documents include your recent tax returns, pay slips, accountant documentation, etc.

If you are making Aliyah or have decided to bring your funds to Israel in cash, it is important to familiarize yourself with the relevant regulations. According to the Discount Bank website, in Israel, amounts under 100,000 shekels do not require a customs declaration, whereas amounts over 100,000 shekels must be declared. If you are making Aliyah, amounts under 1,125,000 shekels do not require a customs declaration.

Although cash deposits are possible in banks, these transactions are highly regulated from a tax perspective. Therefore, the amounts allowed are very limited and vary between financial institutions.

Transferring money online is another option you may be interested in. Online money transfer platforms offer a convenient and affordable alternative but are also subject to strict regulations and must comply with government rules and safety standards. In order to aid our customers as much as possible, Immo Israel has partnered up with a specialized online money transfer platform from abroad to Israel. By using our partner’s services in order to purchase real estate in Israel, customers benefit from a competitive exchange rate, regardless of the amount being transferred. Our partner also offers reduced transfer fees and a dedicated customer service in English to help customers abroad navigate the various regulations. This will allow you to transfer funds in a secure, simple and, most importantly, fast, manner.

For more information about our partner's platform, please fill out this contact form with your questions or details about your situation. We are always happy to help and will contact you as soon as possible.

How Can I Transfer Funds to Israel in Order to Purchase Real Estate?

Discover the benefits of investing in Be'er-Sheva, the second largest city in Israel and the cheapest metropolis in the country. With its rapid expansion and development in recent years, Be'er-Sheva offers a unique opportunity for smart investors. Explore how to align your investment goals with this growing Negev capital, relatively unknown to foreign citizens.

Investing in Be'er-Sheva - How and Where? | Blog Post | Immo Israel

Be'er-Sheva is the second largest city in Israel, after Jerusalem, in terms of area. It is the cheapest metropolis in Israel and has been developing enormously over the last decade. Ideal for investors, the Negev capital is relatively unknown to foreign citizens who have not witnessed its expansion and development in recent years. Learn more about how to make a smart investment in Be'er-Sheva according to your goals.

Be'er-Sheva is composed of a core of older neighborhoods with newer neighborhoods all around, some of which are still under construction. Today, the city has a total of thirty neighborhoods and is continuing to grow at an extraordinary rate.

Be'er-Sheva is shaped the same way as Paris; a spiral. At its heart is the Old City, which has existed since the early 20th century under the siege of the Ottoman Empire. In 1948, upon the State of Israel's declaration of independence and the huge immigration wave, the city of Be'er-Sheva began to develop outside its original borders, an area which is known today as the Old City and where the main administrative centers are still located. The first neighborhoods to develop around the Old City were named with the Hebrew alphabetical letters Aleph, Bet, etc., while the more recent neighborhoods have different names. The city continued its expansion by adding neighborhoods at the edge of its borders, always keeping its characteristic rounded shape. These new, modern neighborhoods are ideal for families and young couples looking for a high-quality place to live at a reasonable price.

The Investors' Neighborhoods: Beth, Gimel and Dalet

These are the old neighborhoods located near Ben Gurion University, Soroka Hospital, and the new Gav-Yam Technology Center. The rental market is very dynamic because these neighborhoods are the most popular with students looking to live near the University. In fact, the city welcomes thousands of students every year from all over the country, all of whom must find housing solutions. This source of demand is inexhaustible and allows investors to rest easy with a secure source of income. Moreover, the average duration of a university degree is 3 years. A good quality property will therefore have a great chance of being rented for several years in a row and therefore, give the investor a passive income for several years.

All of these conditions make these neighborhoods ideal for investors: older and therefore lower-priced buildings, for an average of 800,000 ₪, with annual yields of 4% on average. The Bet neighborhood differs from the other two neighborhoods in that there are several recent towers and buildings, which significantly increase the average price of apartments. However, new buildings are now under construction in all the neighborhoods adjacent to Ben Gurion University. In recent years, these neighborhoods have also seen new and beautiful parks come to life, including the famous Park HaSofrim in the Bet neighborhood, and the Wingate Park in the Gimel neighborhood, both of which are highly frequented.

On average, more than 1,000 transactions take place in these three neighborhoods each year, representing one-third of all transactions in Be'er-Sheva.

The City's Bew Objective: The Renewal of Old Neighborhoods

After devoting time, funding, and energy to the construction of new neighborhoods in order to quickly meet the growing demand, the City Council is now planning to tackle the heart of the city and its renewal in order to intensify the city's dynamics. The City Council's Urban Renewal Corporation has developed a well-defined neighborhood plan of the various buildings eligible for urban renewal, as well as the various rights for residential, commercial and office construction, additions, and expansions. One of the main objectives is to make all amenities available within walking distance for residents, as well as to make these old neighborhoods more attractive.

In fact, the first neighborhoods that are supposed to undergo urban renewal are the Gimel and Old Town districts. The latter is undergoing an extraordinary transformation that will eventually attract a new form of tourism!

Combining old and new, Neve Ze'ev and Ramot are the two largest neighborhoods in Be'er-Sheva. Popular with families and young couples alike, properties here are a safe bet for investors due to the high demand. These neighborhoods have shops, schools, and large parks nearby, making them easy to reach on foot or by short car rides.

The average Real Estate price in Ramot is 1,590,000 ₪, compared to 300,000 ₪ less in Neve Ze'ev. Both have an annual yield of about 3%.

Investing in New Buildings: A Safe Choice

Many high-rise projects and other types of housing are being built in Be'er-Sheva. The average price of new housing is 12,500 ₪/m². Some projects near Ben Gurion University can offer up to 16-17,000 ₪/sqm.

Thus, for a new four-room apartment, prices start at 1,400,000 ₪. A new five-room apartment will also be able to be found from 1,450,000 ₪. The annual returns for investments in new properties are lower than in old properties by 3.5% on average. On the other hand, managing new property is simpler, as the tenants are mainly families or couples with children, and not students who tend to move every year. Thus, the lease renewals can be on a multi-year basis, in comparison to an older apartment.

The answer to the question "is it more profitable to buy a new property than a used one?" is rather complex. However, there are many advantages to buying a new property. First of all, many entrepreneurs offer targeted and lucrative sales promotions in order to sell as many apartments as possible, as quickly as possible, and thus reduce financing. For this reason, the introductory prices, including those for a new off-plan property, can often be more favorable than those of second-hand apartments.

Security matters may constitute another reason why it may be better to buy a new apartment in the area. In Israel, and also in Be'er-Sheva, many old buildings do not meet the safety standards in force today. The older apartments sold on the second-hand market are often characterized by heavy wear and tear, as well as outdated construction standards. In fact, the old buildings were built in the 1950-60s on pillars, most often than not without elevators, parking, balconies, and without Mamad rooms (secure, reinforced rooms). Buying property in old buildings means condemning oneself to inevitable internal and external renovation work. However, it may be more affordable for some, given the very low prices that can be found in the old neighborhoods of Be'er-Sheva. Each investor must therefore choose his preferences according to his objectives, needs, and financial capacity. 

It all depends on your personal needs, objectives, level of risk aversion, and your budget.

What is certain is that in order to invest well, it is important to follow the latest transactions around the targeted property. We recommend you compare the property you are interested into a similar property nearby, to learn about the evolution of the neighborhood, and to analyze the advantages and disadvantages of the building and the property. You should take under consideration any possible renovations you may need to do, as well as the property's orientation and natural lighting, nearby amenities, etc. There is a lot of data to consider, especially if you have no experience in the field of investment. That's why it's better to talk to a professional than to try your luck alone and risk losing time and money.

Are you interested in investing in Be'er-Sheva? Please visit our Search page and select the appropriate filters according to your needs.

How much does renting an apartment in Be'er-Sheva cost?

The price of an average rental apartment in Be'er-Sheva in 2023 varies between 2,500 ₪ and 3,000 ₪, depending on the condition of the apartment (new/old), its location, and as well as the number of rooms.

Is investing in an apartment in Be'er-Sheva in 2023 worthwhile?

Yes, Be'er-Sheva is considered one of the most attractive cities in Israel for investors.

How much does a two-room apartment cost in Be'er-Sheva?

The current average price for a two-room apartment (not including new buildings) in Be'er-Sheva is 596,000 ₪. There are very few new two-room apartments, and most of them are in old buildings.

How much does a three-room apartment in Be'er-Sheva cost?

The current average price for a three-room apartment (not including new buildings) in Be'er-Sheva is 795,000 ₪, while the price for a new apartment is on average 1,348,000 ₪.

How much does a four-room apartment in Be'er-Sheva cost?

The current average price for a four-room apartment (not including new buildings) in Be'er-Sheva is 1,118,000 ₪, while the price for a new apartment is on average 1,403,000 ₪.

What is the annual rate of return for an investment in Be'er-Sheva?

The average annual return for a real estate investment in Be'er-Sheva ranges from 2.7% to 6.3%.

Where is it worthwhile to buy an apartment in Be'er-Sheva?

The city has many popular neighborhoods, including Neve Menahem, Neve Noy, Dalet, Neve Ze'ev, Tet, Ramot, and others. Each investor must consider the population he or she wishes to reach and his or her goals.

Who do I contact if I want to invest in Israel?

You can contact us regarding any type of investment, and we will be happy to assist you in your endeavors.

Investing in Be'er-Sheva - How and Where?