Understanding land ownership in Israel is crucial because it’s fundamentally different from the system in many other countries. When you “buy” an apartment, you’re often not buying the land itself. This sounds strange, but in practice, it works seamlessly.
The vast majority of land in Israel—around 93%—is owned by the state. This is managed by the Israel Land Authority (ILA). When a developer builds an apartment project on this land, they don’t buy it outright. Instead, they get a long-term lease, typically for 49 years, with an option to extend for another 49 years.
When you buy an apartment in that building, you are actually purchasing the rights to that long-term lease. This is called a leasehold. For all practical purposes, it functions just like full ownership. You can sell it, renovate it, and pass it down to your children. The ILA is a silent landlord you’ll likely never interact with. The process of extending the lease is usually a simple, low-cost formality handled by your lawyer when the time comes.
The other 7% of land is privately owned, just like you’d find in the United States or Europe. When you buy a property on this land, you are buying the apartment and a share of the land it sits on. This is called freehold.
So how do you know which one you’re buying? Your lawyer will tell you. During the due diligence process, they will check the Tabu (Land Registry) to see if the property is registered as a leasehold from the ILA or as a privately owned freehold property. For the average buyer, the distinction has very little impact on your day-to-day life or the value of your home. The key is that your rights are clearly and legally registered, which is your lawyer’s main job.
Too Long; Didn’t Read
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Most land in Israel (93%) is state-owned and managed by the Israel Land Authority (ILA).
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When you buy property on this land, you are typically getting a leasehold—a long-term lease (often 49+ years) that functions like full ownership.
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A smaller portion of land (7%) is privately owned, and buying on it gives you freehold ownership.
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Your lawyer will verify the land type during the purchase process, but for homeowners, the practical difference between the two is minimal.
Confused about leaseholds? I can explain it with a simple cup of coffee. DM me at Semerenko Group.
