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n October 2023 the Israeli shekel hit a low against foreign currencies amid war‑related uncertainty. Since then it has been steadily climbing, a trend that benefits many but hurts apartment buyers who pay in foreign money. When the shekel strengthens, those foreign funds translate into fewer shekels, sometimes cutting hundreds of thousands of shekels from a purchase. For buyers without deep pockets, this can mean the difference between closing a deal and walking away.

    Orit Gabay Tirer, VP Marketing at Gabay Group, notes a growing clientele of foreign residents who are not ultra‑wealthy. Many rely on modest equity from a property sale or years of savings. For them, exchange rates are not abstract—they shape the feasibility of a purchase. She cites cases where buyers had already chosen an apartment, progressed through financing, and were close to signing, only to halt or postpone when the rate shifted, creating a significant gap from their original plan.

    Since the October low, the shekel has risen about 21 % against the U.S. dollar, moving from NIS 4.04/$ to NIS 3.19/$ today. In the last six months, from June 2025, it has gained 5 % against the dollar. Against the euro, the shekel has appreciated 12.5 %, from NIS 4.27/€ to NIS 3.74/€.

    Maor Ohana, CEO of Our Way mortgage consulting, shares a recent case: a French retiree with modest savings bought a Tel Aviv apartment for NIS 5 million. A currency shift left him short over NIS 500,000—a substantial amount for someone of his means. Ohana says this issue has always existed for foreign buyers, but the recent shekel surge and rising anti‑Semitism have pushed more middle‑class foreigners to consider Israel, not just as a secondary property.

    Dror Ohev Zion, CEO of Dara Project Managing, illustrates the impact with a 10 % drop in the shekel‑dollar rate: a NIS 3 million apartment would see a NIS 300,000 difference, nearly $100,000. Yet even in such periods, purchases continue, especially by Americans.

    Foreign‑resident home purchases have fallen. In October, only 96 apartments were bought by foreigners, a 13 % drop from October 2024, according to the Ministry of Finance’s chief economist. The decline has persisted since April 2024, though sales have risen 32 % since July compared to the same period last year. Jerusalem accounts for 44 % of all foreign purchases in October.

    Avraham Kopelovich, owner of 24K Luxury Properties, notes that in the luxury market the effect is smaller. For an NIS 8 million deal, a rate change from NIS 3.5/$ to NIS 3.2/$ adds over $200,000. He typically deals with wealthy buyers for whom such differences are less consequential. He attributes foreign sales to the strengthening U.S. economy and recent interest‑rate cuts, which stimulate demand.

    High‑tech professionals with dollar bonuses also feel the shekel’s rise. Nir Shmoul, CEO of Snir Real Estate Marketing Group, recounts a year‑old dilemma: Israeli tech workers with options paid in dollars face the same currency risk. They can ask for a discount or wait for the dollar to strengthen again, but a stronger dollar often coincides with higher property prices. Many still prefer to buy now, taking advantage of a buyer’s market. Deals sometimes lock in a fixed rate of four shekels per dollar or euro, or use a 20/80 financing model—20 % equity upfront and 80 % upon occupancy—which has grown popular locally.

    In summary, the shekel’s appreciation since October 2023 has reshaped the Israeli real‑estate market for foreign buyers and local professionals alike, creating both opportunities and challenges in a fluctuating currency environment.