In an uncertain world, Israeli real estate remains one of the most reliable and profitable investments that you can make. Here are just 8 of the compelling financial arguments for investing your money in Israel during the coming year - leaving aside the many emotional and personal reasons that people choose to own a home in the Jewish State.
1.Israel’s housing prices have risen more than 5% every year for the past 20 years, with even higher rates of increase in Israel’s populous and popular central region. This rate of increase shows no sign of slowing and is great news for investors.
2.Demand continues to outstrip supply in the Israeli real estate market, largely due to the slow bureaucratic approval of building permits. Successive governments have failed to address this problem.
3.Strong Aliyah trends and other demographic factors are expected to keep the demand for housing high in the coming years.
4.35% of Israelis rent their homes, and rental apartments are in short supply and expensive, especially in the most popular central region.
5.The profitable return on Israeli real estate investment comes partly from rental income, and partly from the sale of your property. You can typically achieve 25% return on investment in 3 to 4 years.
6.Israel’s new government has announced plans to rezone downtown office buildings and commercial spaces for conversion into residential units. This will create small apartments in city centers, which will be easy and profitable to rent.
7.The Tel Aviv municipality is investing 100m NIS in renovating and upgrading apartment buildings, increasing their value. Similar to the now-defunct Tama38 program, investors can benefit hugely if a property they own qualifies for improvement. Details here.
8.The long-term real estate rental market in Israel is steady and profitable, especially when your investment property is managed by a property management expert. From finding quality tenants to ensuring that your property is well maintained, the Creative Estates property management team will protect your investment as if it were our own.
Shaun Isaacson is CEO of Creative Estates Israel, a qualified realtor, lawyer and MBA. Find out more about his company’s investment and property management expertise at www.CEIsrael.com
FAQs
Stable Investment- While returns on stocks fluctuate wildly, property investments in Israel have remained stable and mostly gain in value over time – a 4% rise over the course of 2020 and an additional 4% rise expected through 2022, to be precise.
Why should I invest in Israel? ›
Israel has a number of assets appealing to foreign investors, including a high-skilled and multilingual workforce and a strong R&D sector (at 5.44% of GDP it has the world's highest R&D intensity, over twice the OECD average of 2.26% - World Bank), advanced procedures and industrial technologies, governmental ...
Where is the highest ROI in Israel? ›
The numbers beg the question: why is Tel Aviv still Israel's most popular location for real estate investors? In the city of Be'er Sheva in the south of the country, the annual return on residential real estate investment, or ROI, is the highest in Israel, standing at almost 4%.
Can a US citizen buy property in Israel? ›
Acquisition of Property: Foreigners can purchase apartments, houses, or other real estate properties in Israel, subject to the same laws and regulations that apply to Israeli citizens. Land Ownership: The Israeli land ownership system is based on a combination of private and state ownership of land.
Are real estate prices dropping in Israel? ›
“We see that investors and young couples have disappeared from the market, and therefore we have a situation where quite a few 3-4 room apartments are up for bids, and their prices are dropping due to higher supply than demand. This represents a very significant decline of between 10% to 15%," she said.
Where is the best place to invest in Israel? ›
Data recently published by the Ministry of Finance indicates that despite a very high price level, Tel Aviv is the capital city in Israel for investment buyers. Next up are Haifa and Jerusalem, followed by Bat Yam in fourth place – to everyone's surprise. Ashkelon, Eilat, and Harish also ranked high on the list.
Why is Israel so important to the US? ›
ECONOMIC TIES
The U.S.-Israel economic and commercial relationship is strong, anchored by an annual bilateral trade of nearly $50 billion in goods and services. Several treaties and agreements, including the 1985 U.S.-Israel Free Trade Agreement (FTA), solidify bilateral economic relations.
Why is it so expensive to buy a house in Israel? ›
1. Supply: Shortage of 100,000 apartments. In every discussion on the topic of inflated home prices in Israel, the main reason voiced is a shortage of housing available. Each year 50,000-55,000 new households join the market, while the number of new apartments built (“housing starts”) does not meet the demand.
Which country invests the most in Israel? ›
Popularly known as “Start-Up Nation,” Israel invests heavily in education and scientific research. U.S. firms account for nearly two-thirds of the more than 300 research and development (R&D) centers established by multinational companies in Israel.
Where do millionaires live in Israel? ›
Tel Aviv is home to 35,600 millionaires whereas 15,100 millionaires reside in the capital. Tel Aviv is home to 11 billionaires, whereas Jerusalem has five, and Netanya and Herzilya each have two.
The value of Real Estate market is projected to reach US$2.41tn in 2023. Residential Real Estate dominates the market with a projected market volume of US$1.90tn in 2023. The value is expected to show an annual growth rate (CAGR 2023-2028) of 3.34%, resulting in a market volume of US$2.84tn by 2028.
What is the top 1 income in Israel? ›
The average monthly income for households in the top 1% that have at least one adult member who is employed was NIS 138,700 (approximately $40,431) in 2018, compared to NIS 17,500 (approximately $5,100) among the fifth decile, the report showed.
How long can a US citizen live in Israel? ›
U.S. citizens may request visa-free entry to be able to enter or exit Israel – for short-term business, tourist, and transit purposes not exceeding 90 days.
How long can an American live in Israel? ›
U.S. passport holders can stay in Israel for up to three months on a tourist visa issued free of charge upon arrival at Ben-Gurion Airport. If you wish to stay longer, you may apply for another three-month extension at the district office of the Ministry of the Interior.
Can a US citizen retire in Israel? ›
Retirees eligible for Social Security benefits in the U.S. can continue to receive them while living in Israel, which can be a significant advantage since the Israeli government pension is generally not available to retirees over the age of 60.
Why is real estate in Israel so expensive? ›
1. Supply: Shortage of 100,000 apartments. In every discussion on the topic of inflated home prices in Israel, the main reason voiced is a shortage of housing available. Each year 50,000-55,000 new households join the market, while the number of new apartments built (“housing starts”) does not meet the demand.
Is Israel a good place to make money? ›
It's perfectly possible to make money in Israel and keep most of it. According to the OECD, Israeli tax revenues amounted to 32.2% of GDP in 2021, which was better than the OECD average of 34.1%.
Who is the largest property owner in Israel? ›
In fact, the Israeli government owns 93% of the country's land. This ownership structure originated in 1948, when Israel was founded as a meager nation-state. It came about amid government fears that someone would buy out the land and ultimately overrule the authorities.
Is it a good idea to live in Israel? ›
“Most expats complete their stay in Israel and are generally very happy. The first thing they say is that it feels safe,” she says. According to a 2022 report by the CBS, 83% of Israelis aged 20 and over feel safe walking in built-up areas at night.
