Property In Israel- Where to invest?

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Many Israelis and Olim want to buy their first home in Israel but they find it too financially challenging. They simply don’t know how to put together the funds for a downpayment, so they remain in the renting game. But here’s the thing, buying a home in Israel for investment, and getting on to the property ladder is more feasible than what many people think.

Israeli banks will usually fund 75% of a real estate purchase, meaning you only need to come up with the remaining 25% (depending on personal and financial details about the borrower). Now if you want to buy a 5 room apartment in Tel Aviv, that can be quite a challenge. But there are still plenty of cities and towns in Israel where property is much more affordable. And many of those places are also places with great growth predictions. I’ve created a list of 4 affordable locations that are worth exploring if you want to become a property owner in 2024.

Yokneam

Yokneam is located in the North of Israel, not far from Haifa. There is a buzzing high tech centre there meaning plenty of employment opportunities. It is surrounded by stunning mountainous views and breathtaking nature. It’s just an hour’s drive from Tel Aviv and there is good public transportation to central cities in Israel.

From an investment perspective, Yokneam is still on the more affordable side of things and there are great properties for sale for under 2 million shekels. Even if you don’t see yourself living in Yokneam, it is a great place in which to buy property as an investment.

2. Yavne

Yavne is a small city located south of Rishon LeZion. It’s just 6 kilometres from the sea and is just a 30 mins drive from Tel Aviv. The city is quiet and family oriented and has great facilities and education for kids. There is a direct train line connecting Yavne to Tel Aviv and other cities.

From an investment perspective, Yavne’s location makes it super attractive. As a small city its attractive for those that want to step away from urban living while still being able to commute to Tel Aviv with ease. A 5 room apartment there will cost approximately 2.7 million shekels.

3. Pardes Chana

Pardes Chana is a city located in the north of the Sharon Area. Pardes Chana is a community orientated city with a strong Anglo community too. It’s super kid friendly and is known for being an open minded, nature loving place. It also happens to be one of the safer places in Israel, with not a single siren blasted there in the last 10 years.

From an investment perspective, Pardes Chana boasts many villa homes with back gardens and several bedrooms. Just an hour’s drive from Tel Aviv, it’s really quite central and so it’s a very practical place to own a home. A 5 room apartment there will cost approximately 2.8 million shekels.

4. Petach Tikva

Petach Tikva is unjustifiably not one of Israel’s most glamorous cities. It is super centrally located, just minutes from Tel Aviv, Ramat Gan, and Bnei Brak, and has a lot to offer. There are lots of new-built apartments as well as older neighbourhoods and the city is well connected to surrounding areas by public transport.

From an investment perspective, with over 200,000 residents, Petach Tikva is one of Israel’s big major cities. There are malls, schools, office parks, restaurants and much more. The city is constantly growing as is demand for it. A 5 room apartment in Petach Tikva will cost approximately 3.4 million shekels.

No one knows what 2024 will bring for the property market and it would be unprofessional of me to give predictions here. That being said, with an expected Aliya wave, and with Israeli monetary and fiscal policy generally looking to support the property market, I see a real potential that the property market sees growth this year. It’s true, the property market in Israel has been relatively quiet for the last year. But historically, quiet periods are followed by growth, and if that is indeed the case, now is the perfect time to buy property in Israel and to see it grow in value over time.