In the months following Oct. 7, 2023, Israel’s real estate market experienced a temporary slowdown, but since then, interest from overseas buyers has surged. Many are considering aliyah now or in the future, while others seek a vacation home for visits. Some want to secure a safe haven amid rising antisemitism and civil unrest abroad, and for others, the purchase is purely an investment. This growing demand reflects both a deep commitment to Israel and a desire for security.
One of the most common questions received through the Buyitinisrael website is: “How do I begin purchasing a home in Israel?” To guide buyers and investors through the process, we’ve created this eight-step roadmap that outlines the key considerations and decisions you need to make. Answering these questions will help you focus your real estate search and move forward with confidence.
- Define Your Purpose
Before anything else, ask yourself why you are purchasing a home in Israel and what your goals are. Will you live in it full-time or part-time? Do you plan to rent it out? Is this home for your children or a long-term investment? Your answers will shape many future decisions, from location to budget to the type of property that best suits your needs.
- Choose Your Location
Once your purpose is clear, the next step is deciding where to buy. Israel is a small but diverse country with vastly different communities, climates and lifestyles. Some buyers are drawn to the vibrant energy of Tel Aviv, while others prefer the historic and spiritual atmosphere of Jerusalem. Coastal areas offer proximity to the beach, whereas pastoral locations in the north or south provide a quieter lifestyle. Beyond geography, the social and cultural fabric of a community is equally important—some buyers seek neighborhoods with a large English-speaking population, while others prioritize access to educational institutions, shuls or business hubs. If you are buying as part of your aliyah journey, it is worth spending time in different areas, researching local infrastructure, and assessing how well you can integrate into the community before making a decision.
- Understand Your Mortgage Options
If you require a mortgage, it is advisable to obtain Ishur Ikroni (preliminary approval) from at least one Israeli bank before making an offer. Mortgage eligibility depends on factors such as income, down payment, and age. Many English-speaking mortgage brokers in Israel can assist with securing the best terms, and comparing offers from different banks is highly recommended. Understanding the financial implications early on will ensure that you set realistic expectations for your purchase.
- Determine Your Budget
Establishing a budget is one of the most critical steps in purchasing a home in Israel. The process begins by assessing your available funds, including personal savings, financial gifts, mortgage financing and any funds allocated for real estate investments. It is essential to also account for additional costs beyond the purchase price, such as purchase tax, legal fees, agent commissions, mortgage-related expenses and potential renovation costs. Additionally, ongoing expenses, including building maintenance fees (va’ad bayit), management fees for properties with amenities, and municipal property tax (arnona), should be factored into your long-term financial planning.
- Identify the Type of Property You Want
Once your budget is established, the next step is determining what type of property best suits your needs. In central Israel, high-rise apartments dominate the market, while freestanding homes are more common in the north, south, and Judea and Samaria. Some buyers prefer the convenience of purchasing a brand-new home, while others find value in older, second-hand properties that may require renovations. The choice between a move-in-ready home and a fixer-upper depends on personal preference and available resources. Additionally, consider the size and layout that will work best for you, including the number of rooms, outdoor space, and whether you prefer a low or high floor in an apartment building. Those looking for a long-term investment might also explore purchasing a plot of land to build their own home.
- Start Your Search
With a clear budget and property criteria, you can now begin your search. Online property listings provide a starting point, but working with an English-speaking real estate agent can be beneficial in navigating the local market. Agents can provide insights into pricing trends, neighborhood dynamics and new opportunities. Whether you are able to visit properties in person or need to rely on virtual tours, refining your search based on your priorities will help you narrow down the best options available.
- Engage a Real Estate Lawyer and Tax Advisor
Hiring a qualified Israeli real estate lawyer is essential, especially for foreign buyers. Your lawyer will verify legal ownership, review contracts, negotiate terms, and handle paperwork on your behalf. Additionally, they will provide guidance on real estate taxes in Israel, ensuring compliance with local regulations. Since real estate transactions may have tax implications in your home country, consulting a local tax expert is also recommended to avoid unexpected liabilities. Engaging the right legal and financial professionals from the outset will ensure a smooth and secure purchasing process.
- Consult Other Professionals as Needed
Depending on the property, you may need additional professionals to guide you. A real estate appraiser can assess property value and potential appreciation, ensuring that you are making a sound investment. If you plan to renovate or expand, consulting an architect or engineer will help determine feasibility and costs. These expert evaluations will provide clarity on what is possible and prevent unforeseen expenses down the road.
Final Thoughts: Patience And Preparation Pay Off
Buying a home in Israel is a complex process, with high prices, limited supply, and bureaucratic hurdles. However, careful planning and informed decision-making will help you find the right home. By understanding your goals, budgeting wisely, researching locations, and working with trusted professionals, you can navigate the process smoothly and make a successful purchase.
For more insights, visit Buyitinisrael.com, where we provide expert guidance, in-depth market updates and personal assistance. Whether you’re buying for aliyah, investment, or a vacation home, we’re here to make the process as smooth as possible.
Debbie Goldfischer is the founder and CEO of Buyitinisrael and host of the Israel real estate podcast: “On The House.” A leading figure in Israeli real estate since 2004, she launched Buyitinisrael.com in 2020 to provide reliable, English-language resources for navigating Israel’s property market. Debbie is available to personally assist you in finding the right home—whether new or resale—anywhere in Israel. To connect with Debbie, email [email protected].
