March 20, 2025 | Real Estate News from Israel
Foreign Investors Rush to Buy Homes in Israel
Recently, many people from other countries, especially from North America and Europe, are buying homes in Israel. They’re doing this because more and more Jewish families living abroad are worried about antisemitism, which means unfair or harmful treatment against Jewish people. To feel safer and more connected to Israel, these families are buying apartments and houses, mostly in cities like Jerusalem and Beit Shemesh, where there are strong Jewish communities.
Renting Homes Long-Term: Why It’s Popular
A new housing project called “Rent 2 Stay” in the city of Yavne is helping people find stable places to rent long-term, meaning for several years instead of just months. Recently, around 85 families quickly signed long-term rental agreements for comfortable four-room apartments. People like this because it gives them a feeling of security—they know they can stay in their homes without worrying about sudden moves or rent hikes.
Luxury Homes Set New Records in Tel Aviv
In Tel Aviv, which is a very popular and wealthy city, someone recently bought a beautiful luxury penthouse apartment for about 45 million shekels, making it one of the most expensive home purchases ever in the city. A penthouse is a very fancy apartment located at the top floor of a building, usually with amazing views. This sale shows that wealthy people still strongly believe that buying property in Tel Aviv is a good investment.
Israel’s Skyline Grows Taller with New Towers
Hi Tower Now Open in Givatayim
In the city of Givatayim, near Tel Aviv, a huge new building called the Hi Tower was recently completed. It is now the third tallest building in Israel, rising about 230 meters (more than twice the length of a football field!) and includes 60 floors filled with apartments and offices. This tower shows how cities near Tel Aviv are growing upwards to make more space for people and businesses.
Midtown Tel Aviv Project Completed
In Tel Aviv, the big “Midtown” project just finished building two huge towers, each about 50 stories high. One tower is for living, filled with nice apartments, and the other is mainly for offices. These buildings help combine homes and workplaces in one convenient area, making life easier for residents and workers.
Government Decisions Impacting Real Estate
Lawmakers Say “No” to Airbnb Reporting Law
Recently, Israel’s government decided not to pass a law that would make companies like Airbnb and Booking.com tell the government who rents out their homes through these platforms. This means less paperwork for people renting out their homes short-term, but it also means less information for authorities trying to manage housing issues.
Israel Land Authority: Making it Easier to Own Land
The Israel Land Authority, the government group that controls land use, has made some important changes. They’re now allowing more land previously owned only by the government to be bought privately. The goal is to make more land available to build homes on, which could help lower housing prices in the long run.
Big Moves by Major Real Estate Companies
Israel Canada Buys Big and Plans Bigger
A major company called Israel Canada is making headlines by buying up lots of valuable properties across Israel. They’re investing heavily in large residential and commercial buildings, especially luxury apartments and shopping areas. These moves show that big companies believe the real estate market in Israel will keep growing.
Understanding Today’s Real Estate Market in Israel
Prices Still Rising but Slowing Down
The overall price of homes in Israel has been rising steadily, but recently that rise has started to slow down. Home prices increased by roughly 7% compared to last year, which is still high but lower than in previous years when prices rose faster.
Why Are Prices Rising?
Several reasons cause prices to keep rising, even if they’re slowing down:
- Limited Supply: There aren’t enough homes for everyone who wants one.
- High Demand: More people, especially from abroad, want to buy homes in Israel.
- Building Costs: The materials and workers needed to build homes have become more expensive, pushing up overall prices.
Where Are Prices Rising Most?
Cities like Tel Aviv and Haifa saw the biggest yearly price increases—around 9 to 11%. Jerusalem’s increase was smaller, about 5 to 6%. Recently, Tel Aviv showed some small price drops in certain neighborhoods, suggesting the market might start balancing soon.
Renting vs. Buying
Because buying homes has gotten more expensive, many people are renting instead. This has caused rent prices to rise in most places. However, Tel Aviv recently experienced a small drop in rental prices due to the many new apartments available, making the market more balanced.
Big Projects Shaping the Future
- Tel Aviv’s Old Airport Becomes New Neighborhood: The former Sde Dov airport area in Tel Aviv is now becoming a modern neighborhood with thousands of new apartments by the sea.
- Urban Renewal: Many cities, like Tel Aviv’s Hahashmal area and Bat Yam’s Garden Towers, are tearing down old buildings to replace them with new, safer, and taller apartments.
Real Estate Impacted by Security Events
Recently, the city of Rishon LeTsiyon was affected by rockets from Hamas in Gaza. While this doesn’t directly impact real estate, events like this can temporarily affect whether people want to live or buy homes in certain areas.
New Government Policies Changing the Market
- Taxes on Property: The government recently raised the tax (VAT) on buying homes from 17% to 18%, making purchases slightly more expensive.
- Affordable Housing: To help with affordability, the government is encouraging long-term rentals and cheaper homes for families.
Conclusion
Israel’s real estate market today is exciting, full of opportunities, and facing many changes. Prices continue to grow, though more slowly, and big companies and foreign buyers remain very active. Even though there are challenges like rising costs and security concerns, government actions and new developments promise to shape Israel’s cities positively for years to come.
