Introduction
Israel’s government housing lottery, officially known as Dira BeHanacha, is the country’s primary affordable housing program. It allows eligible residents to purchase newly built apartments below market value through a state-regulated lottery system.
If you are researching how to buy discounted property in Israel in 2026, this guide explains eligibility rules, how the lottery works, resale restrictions, and whether the program makes financial sense.
Quick Answer
Dira BeHanacha is Israel’s government housing lottery that offers new apartments at regulated below-market prices. Only eligible Israeli citizens and permanent residents can participate, and resale restrictions apply.
What Is the Israel Housing Lottery (Dira BeHanacha)?
Dira BeHanacha is a government-controlled housing allocation program designed to make homeownership more accessible.
Unlike traditional real estate purchases:
- Prices are regulated by the state
- Apartments are allocated by lottery
- Eligibility must be approved in advance
The program is administered by Israel’s Ministry of Construction and Housing and the Israel Land Authority.
Official source:
https://www.gov.il/he/departments/topics/dira/govil-landing-page
Who Is Eligible for the Israel Housing Lottery?
To participate, applicants must obtain an official eligibility certificate (commonly known as Zakaut).
Primary eligibility criteria include:
- No recent residential property ownership
- Israeli citizenship or permanent residency
- Compliance with the current lottery cycle rules
U.S. citizens who are not Israeli residents are not eligible. Dual U.S.–Israeli citizens may qualify if they meet residency requirements.
Eligibility details:
https://www.gov.il/he/pages/tenaey_zkaut
How Does the Israel Government Housing Lottery Work?
The process follows structured steps:
- Obtain eligibility certificate
- Register for open housing projects
- Enter the lottery
- Wait for the draw
- Receive ranking if selected
Official platform:
https://www.dira.moch.gov.il/
Winning is never guaranteed.
How Much Discount Do Buyers Receive?
Apartments under Dira BeHanacha are typically priced 20% to 30% below market value, depending on location and land valuation formulas.
The program does not provide a cash subsidy. Instead, it regulates the sale price of the apartment.
What Happens After Winning?
If selected:
- You must sign a purchase agreement within a fixed period
- You must secure mortgage financing
- You may need to wait for construction completion
Many projects are sold off-plan, meaning delivery may take several years.
Can You Resell a Lottery Apartment?
Properties purchased through the Israel housing lottery are generally subject to resale restrictions for several years.
Restrictions may include:
- Prohibition on early resale
- Mandatory occupancy requirements
- Financial penalties for non-compliance
This program is intended for long-term primary residence, not short-term investment flipping.
Official FAQ:
https://www.gov.il/he/pages/faq_dira
Is the Israel Housing Lottery Worth It in 2026?
The answer depends on your profile.
For long-term Israeli residents planning stable homeownership, the discounted purchase price may offer substantial financial benefit.
For investors seeking liquidity or flexibility, resale restrictions and construction timelines may limit attractiveness.
Key considerations:
- Stable Israeli income
- Mortgage eligibility
- Long-term residency plans
- Local market conditions
Israel Housing Lottery vs Buying on the Open Market
Under Dira BeHanacha:
- Price is government-regulated
- Allocation is lottery-based
- Resale is restricted
In the open market:
- Price follows supply and demand
- Buyers choose properties directly
- Resale is unrestricted
The lottery offers price advantage but reduced flexibility.
Common Mistakes U.S. Buyers Make
Assuming U.S. citizenship alone grants eligibility.
Confusing the program with U.S. rental assistance programs.
Ignoring resale restrictions.
Underestimating construction timelines.
Entering without pre-approving mortgage eligibility.
Full Timeline of the Process
- Verify Israeli residency eligibility
- Apply for eligibility certificate
- Register for lottery projects
- Lottery draw
- Contract signing
- Mortgage approval
- Construction period
- Mandatory holding period
Frequently Asked Questions
Can Americans participate?
Only if they hold Israeli citizenship or permanent residency.
Is the process available in English?
No. Official platforms operate in Hebrew.
Does winning guarantee mortgage approval?
No. Mortgage approval depends on Israeli banking criteria.
Is this similar to U.S. affordable housing programs?
No. It is a regulated purchase-price program, not rental assistance.
Official Resources
Program overview
https://www.gov.il/he/departments/topics/dira/govil-landing-page
Eligibility rules
https://www.gov.il/he/pages/tenaey_zkaut
Lottery registration
https://www.gov.il/he/service/register_for_discounted_housing_lottery
Official platform
https://www.dira.moch.gov.il/
Interactive project map
https://moch.maps.arcgis.com/apps/webappviewer/index.html?id=40c996fd924c46f6815e77a9eef81362
This article is for informational purposes only and does not constitute legal advice.