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Is real estate still the best investment in Israel?
You need only glance at any Israeli news site to see that the local economy is booming in spite of the worldwide pandemic.
In the first quarter of 2021, a staggering 10 Israeli companies obtained unicorn status (privately-held companies that reach a valuation of $1 billion (R14.4 billion) or more), bringing the total number of Israeli unicorns into the 60s.
Israel has more than 7 000 active startups and the largest number of Nasdaq-listed companies outside of North America and China. If you have money to invest, now is without a doubt a great time to put your faith in Israel. The only question that remains is whether to invest in Israeli stock or buy property.
The truth is, you don’t actually have to choose, you might be able to do a bit of both. Here are some reasons why Israeli real estate is such a safe bet:
Your stake in the land
Jewish people throughout the centuries yearned to come to Israel and would be astounded to see the modern, vibrant, successful country it is today. What better way to express your commitment to our incredible land (especially if you’re not ready to make aliya) than to buy a property?
Many Israel real-estate owners are able to enjoy their investment by using their homes for vacations. Sukkot in Jerusalem? Summer break on Herzliya beach? Passover in Netanya?
Just think, you could be sitting on your balcony overlooking the sea, and dining out at a different amazing restaurant every night – all the while knowing you’ve made a valuable investment that is steadily increasing in value. You can’t do that with stocks! If you can’t use your property today, you can rent it out and get a great return or pass it on to your kids as a gift – we doubt they’ll refuse.
Stable investment
While returns on stocks fluctuate wildly, property investments in Israel have remained stable and mostly gain in value over time – a 4% rise over the course of 2020, and an additional 4% rise expected through 2022, to be precise.
Urban renewal
The country-wide urban renewal scheme means that aging properties will most likely get a facelift at some point. Not only does this make them more attractive, it also raises their value and lowers the chances of depreciation over the long term.
Spoilt for choice
Whether you prefer a sea view or a hilltop sanctuary, a foothold in a busy urban sprawl, or a chance to reside a stone’s throw away home from the Old City in Jerusalem – Israel pretty much has it all.
Our roundup of the best real-estate investments in Israel
OK, you’re sold on the idea of purchasing Israeli real estate, but how do you choose where to invest? Read on for our list of some of the best places to own real estate in Israel:
Tel Aviv
Labelled the ‘Mediterranean capital of cool’ by the New York Times, Tel Aviv is Israel’s version of the city that never sleeps. With miles of gorgeous beaches, a buzzing nightlife, sophisticated business infrastructure, and an incredible vibe, this is a city that will never get old and an investment you’ll want to hang onto for life.
Jaffa
Sparkling blue sea, quaint old town, scores of restaurants and shops, this historic port town has undergone extensive regeneration and today forms a highly desirable part of Tel Aviv’s urban tapestry. Demand for a foothold in this trendy area is high, and space is limited, so if you get a chance to invest here, don’t hesitate.
Jerusalem
“If I forget thee, oh Jerusalem.” (Psalms).
One of the oldest and most desired cities in the world and a focal point for people of many religions, Jerusalem will never go out of fashion. Owning real estate in Jerusalem is a privilege not to be underestimated, and also a sound investment that will retain its value over time.
Ra’anana
This centrally-located city is just a 25-minute drive from Tel Aviv and 15 minutes away from Herzliya. Blessed with some of the best schools in the country, a well-developed business district, top-notch facilities, and gorgeous landscaping, the city is a magnet for immigrants from all over the world. Demand in Ra’anana is always high, making it a great place to invest.
Modi’in
Modi’in is a central Israeli city that’s well-connected to both Tel Aviv and Jerusalem by way of Highway 443. This well-planned and accessible city is a vibrant, family-friendly place to live with modern housing, malls, parks, and good municipal facilities. Real-estate prices have risen steadily since it was established in the 1990s and it remains a stable investment, particularly for those who don’t want to pay the premiums of Tel Aviv, Jerusalem, and other more-established cities.
Harish
This is a rapidly developing town in the Haifa district of Israel, 15 minutes from Caesarea and 50 minutes from Tel Aviv. Extensive development of the town is being subsidised by the state, which intends Harish to become a fully-functioning, well-planned town with advanced infrastructure. To attract a young, high-quality population, there will be green spaces, public buildings, educational institutions, and extensive public-transport infrastructure. Harish currently offers a variety of new apartments at affordable prices, making it a great investment for those who want to get in early and see their investment rise.
Netanya
A city in the Northern Central District of Israel and the capital of the surrounding Sharon plain, Netanya’s 14km of sandy beaches have made it a popular tourist resort hotspot for decades – but it’s not just for tourists. The central location, recent regeneration, well-oiled municipality, and great facilities combine to make it an attractive place to live, work, and play. Many people from overseas own holiday homes here – you really can’t go wrong.
Dive on in
If your appetite has been whetted by some of the tantalising real-estate options Israel has to offer, don’t hesitate to get in touch and our advisors will help you to find the ideal investment for you.
With more than 20 years of experience and backed by the biggest development companies in Israel, you can trust the Hold team to meet your unique requirements.
Book a free consultation here.