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s global uncertainty and antisemitism escalate, a surge in foreign investment is transforming Israel's real estate market. Foreign buyers are no longer just investors; they're making permanent moves to the Holy Land. Mortgage applications have doubled, with new communities emerging and overseas purchasers shifting from investment properties to actual residences.
Bank Jerusalem's Nisim Nichko notes that foreign nationals are now actively pursuing mortgages for residential apartments in Israel. "We've seen a significant increase in interest from abroad, especially due to the war and rising antisemitism," he says. "This is reflected in actual transactions – funds are being transferred, and demand for mortgages is growing."
Nichko describes entire communities reaching out, like a group of 40 community members from New Jersey planning to purchase apartments together in a specific area. Previously, these were mainly investors; now, households want to move here and live in Israel. Foreign residents are targeting new areas, such as Beit Shemesh, Givat Ze'ev, and Safed, where religious Anglo-Saxon communities are forming new neighborhoods tailored to their needs.
A comparison between 2020 and 2024 shows that the value of mortgages taken by foreign buyers has risen by over 100%. The average loan amount for foreign nationals has grown significantly due to rising real estate prices in Israel. However, the number of applicants seeking mortgages has also increased. Nichko predicts that 2025 will see a significant shift – from groundwork preparation to actual purchases and mortgage takeovers.
Mortgage consulting firms are also noticing the trend. Meir Vider, CEO of Vider Mortgages, says, "The Israeli real estate market is becoming increasingly attractive to foreign residents, who approach local banks for financing." In 2024, there was a significant growth in mortgages granted to foreign residents – an increase of approximately 37% compared to 2023.
Vider attributes the growing demand to favorable interest rates and rising housing prices in foreign markets. "Israel remains a desirable destination due to its economic stability and strong financial market," he says. Additionally, some countries limit property purchases or impose high taxes, making Israel an attractive option for value appreciation. Israeli banks have created tailored financial products, allowing foreign residents to take loans on more favorable terms.
Real estate companies are also reporting increased demand from foreign buyers. The Ram Adar group recently closed two deals with American couples planning to make Aliyah in the coming years. Anna Fogel, VP of Marketing and Sales at the Ram Adar group, notes that the international quarter in Lod is becoming a hub for foreign residents, featuring employment areas, commercial space, and public institutions.
As global uncertainty persists, Israel's real estate market is poised to continue attracting foreign investment. With mortgage applications doubling and new communities emerging, it's clear that foreign buyers are no longer just investors – they're making permanent moves to the Holy Land.
