Israel’s housing market took a big hit in Q1 and Q2 of 2020, presenting serious opportunities for foreign and domestic investors.
It’s no mystery as to why homebuyers didn’t show up in flocks this year to Israel’s housing opportunities. Amidst the global pandemic of COVID, countries big and small are showing serious pain points with GDP, unemployment, potential inflation, and shifts in the residential and commercial real estate markets.
Where does the opportunity present itself here in Israel? During Q2 in, only 20,600 homes were purchased in Israel, representing the lowest quarterly figure in over 10 years (as reported by the Economist at the Finance Ministry). While domestic demand has not reduced, and international investors have not turned cold on Israeli luxury and commercial opportunities, there has been a freeze in purchasing. Let’s look at why, and where this is headed.
A colleague of mine from Australia has amassed a total worth of nearly $1 billion in assets and wealth. Less than one month ago, he recognized the discounted values on Israeli luxury housing. He bought a ticket and jumped on an evening flight to Tel Aviv. During the flight, he prepared an outline of his investment budget for the trip, which fell in the millions of dollars.
He arrived at the airport, checkbook in hand, and approached passport control. Less than one hour later, he was booked and boarded on a plane back to Australia.
Israel’s Ministry of Tourism and Ministry of Interior had not accepted his arrival and sent him packing. The key indication here is that Israel’s real estate market has not taken a hit due to lowered demand or interest, it has taken a hit due to accessibility.
With moderate experience in Israel’s real estate market, I can say with confidence that prices are at a holding place. For those who can get in, now is a serious opportunity to acquire discounted Israeli residential and commercial real estate. The high volatility of the dollar vs. shekel is presenting its own results for outside investment, but the airways are open for an influx of foreign currency for the purpose of property acquisition.