People often reach out to us for guidance on buying a home in Israel – where to buy, what to buy, and how to navigate the process. Many already have a preferred city in mind, but if you’re unsure, how do you decide?
The first step is defining your goal. Are you making Aliyah, seeking a vacation home, or investing? Your answer will determine location, size, and other key factors.
Aliyah
If you’re planning to make Aliyah, your home will be the hub of your daily life, so size matters – within reason, get as much space as your budget allows. Just as important is finding a neighborhood where your family will feel at home. We recommend reaching out to locals in the community you're considering to get a sense of the neighborhood’s hashkafa (religious outlook) and values. If you have young children, schools and extracurricular options should be a key part of your decision, as they’ll shape your family’s daily routine.
Vacation Home
Buying a vacation home is different. While community is still valuable, location and lifestyle often take priority. For most people, proximity to religious sites, cultural landmarks, entertainment, and dining matter more.
Two real-life examples highlight the difference between buying a vacation home and a primary residence:
(1) A young retiree couple initially planned to purchase a 2-bedroom pied-a-terre in Baka or the German Colony. But when their daughter made Aliyah, they decided to follow. Now needing a permanent home, they expanded their search and, for the same price, secured a spacious 4-bedroom apartment in the beautifully planned Givat Hamatos neighborhood, currently under construction.
(2) A young family sought a vacation home in central Jerusalem, prioritizing walkability to the Kotel and cultural attractions. However, after October 7th, they pivoted, and chose to make Aliyah. To better fit their long-term needs, they bought a house under construction in Rav Rosner’s Nofei Hashemesh community in Beit Shemesh, where they found the ideal mix of community, education, spirituality, and space.
Investment
All buyers are investors at some level, as everyone wants to “buy right” and purchase a property with strong upside. But if profit is your primary goal, your investment horizon is key.
For long-term investors (8+ years), one attractive option is Pinuy Binuy – Israel’s largest urban renewal program. Pinuy Binuy means to evacuate (pinuy) and tear down older buildings, and construct (binuy) new higher-density housing. Many investors buy apartments in aging buildings slated for redevelopment, eventually trading them for brand-new, larger apartments at no extra cost – plus developers cover relocation expenses (i.e. pay you a monthly rent during construction). This strategy has also been a blessing for people with timing flexibility but limited budgets, enabling them to acquire apartments in prime locations at lower prices.
For shorter-term investors, buying an existing apartment or “on paper” in up-and-coming areas adjacent to established communities is a winning strategy. Over the years, we have worked on many projects in emerging neighborhoods that were initially priced significantly lower than nearby desirable communities. These areas quickly became sought-after “destinations,” and prices rose dramatically. Additionally, developers often offer financial incentives, such as favorable payment terms.
Final Thoughts
Whatever your buying goal, I offer you two key recommendations: (1) Surround yourself with knowledgeable, trustworthy professionals to educate you and help you choose wisely. (2) If you can afford it, buy now. You can always upgrade later, but getting into the market today enables you to lock in 2025 prices. As my friend said to me immediately before signing a contract, “The best time to buy real estate in Israel was ten years ago. The second-best time is today.”
Gedaliah Borvick will be in NY/NJ the week of March 17th for private meetings and public presentations. Contact him at gborvick@gmail.com for details.