Whether you are an investor or a new immigrant looking to move to Israel, buying real estate can be an exciting and rewarding project. However, before you take the plunge, it is important to understand the workings of the Israeli real estate market, including the best timing.
The Israeli Real Estate Market
Before beginning the process to purchase property in Israel, it is important to fully understand the workings of the Israeli real estate market. The prices of properties in Israel do not reflect the prices of the American or European markets, so you may be shocked when comparing the budget required for purchasing property in Israel.
The Israeli real estate market is constantly on the rise, no matter where you live, and real estate prices have risen dramatically in recent years. This is due to high demand, ever-increasing population density, and the real estate investment culture that has developed here. The prices of properties in large cities such as Tel Aviv, Jerusalem, Ashdod, and Netanya are typically higher than in areas further away from the center, such as Haifa in the north or Be'er Sheva in the south. The advantages in these areas is the wide array of interesting and affordable investment opportunities. However, as noted above, the entire Israeli market is increasing, adding a certain percentage to real estate prices around the country every year.
As a result, the average price of real estate in Israel in 2022 increased by an average of 19% compared to the previous year. It is important to note that some cities are experiencing higher increases than others, such as Jerusalem, Haifa, and Ashkelon.
Investing in Real Estate in Israel
Investing in real estate in Israel can be a wise choice for several reasons. First, the high demand for housing in the country makes it relatively easy to find tenants, especially in strategic locations, such as business districts or neighborhoods surrounding universities. In addition, the annual return on real estate investments in Israel can be relatively high, especially in the suburbs where prices are more affordable. This can offer interesting opportunities for investors looking to make a long-term profit. Compared to real estate investment in Europe for instance, where prices are often higher and the rates of return are typically lower, real estate investment in Israel can offer attractive advantages and returns for investors seeking to diversify their portfolio.
Buying a Property to Live In
If you are a new immigrant wishing to settle in Israel, buying an apartment or house can be an excellent choice to help ease your adjustment period. It can also be a wise investment for your future. Before taking the plunge, however, it is important to be familiar with the different regions and cities, as well as the types of real estate available, in order to understand what property will best suit your needs and budget.
A common mistake in buying a property in Israel is to fall in love with a place where you like to spend your vacations... but is impractical for everyday life! You love coming to Tel Aviv during the vacations and walking along the Tayelet, eating ice cream and sunbathing by the sea... This does not necessarily mean that living in this place in Israel will be practical for you on a daily basis, between the incessant traffic jams, the real estate prices in the Center of Israel (Gush Dan) and the very high cost of living in general.
Our advice at Immo Israel - our little country has much more to offer than just the "English-speaking" regions you know and are used to hearing about! Don't decide where you are going to live in Israel before exploring other options; be open to new areas that may hold some nice surprises for you.
When Is the Right Time to Buy a Property in Israel?
The right time to buy a property in Israel is when you are ready! If you have defined your plans and expectations, and have the necessary budget, don't wait. Real estate prices have risen considerably in recent years, and can be expected to continue to rise in the years to come. However, it is important to fully assess your financial capacity to avoid difficult situations in the future.
In conclusion, buying real estate in Israel can be an exciting and rewarding project, whether you want to live there or merely invest. However, before taking the plunge, don't forget to carefully define your project and your financial plan, in order to avoid unpleasant surprises on your way to the Promised Land.
Using Immo Israel's advanced real estate search platform, you will be able to discover a large selection of quality real estate listings in English, offered by homeowners as well as real estate agents, throughout the country.