Some 28,000 Jews have immigrated to Israel since the start of the war, according to figures from the Ministry of Aliya and Integration. Estimates are that a few more thousand will arrive by the end of 2024, meaning there is a significant decrease from the 46,600 immigrants in 2023.
Alongside the immigrants there are foreign residents preparing the ground for the future by buying apartments for investment, or the option of moving to Israel at some stage. According to the latest survey of housing sales by the Ministry of Finance chief economist, in July 2024 there was a 62% increase in apartment purchases in Israel by foreign residents compared with July 2023. This figure was included in the investment purchases section of the survey. This sounds like a big increase but overall 174 apartments were purchased by foreign residents in July 2024 - an increase of just 70 over July 2023. Compared with June 2024 the rise was 8%, and still far from the peak in 2022.
The report found that the dominant location for housing purchases by foreign residents is Jerusalem with 55% of purchases in the capital. Other popular locations for foreign residents are more surprising including Kiryat Ono and Netanya.
Another interesting trend that has emerged is the purchase of a cluster of homes by community members who come to Israel to buy together and are even prepared to buy complete projects from developers, who for their part invest great efforts in marketing to Jews abroad.
Kiryat Ono: US Mashhad community bought 42 apartments
The surprising popularity of Kiryat One, which is mentioned in the chief economist's survey, stems from a large group of US Jews in East Coast cities, who belong to Jewish communities originating from Mashhad in Iran. The group bought 42 apartments in Kiryat Ono for NIS 190 million, in an urban renewal project developed by the Canaan Group in the Levi Eshkol section of the Kiron neighborhood. Cnaan Group VP sales Udi Levi says, "We met them at the end of 2022 at a sales fair but the war cut things off. There were those who registered and agreements, which were supposed to be signed after the holidays last October. After I returned from reserve duty we renewed talks and re-registration was carried out. They purchased 42 and another 12 are in negotiations. Some were canceled."
The group came united, and with the aim of preserving the community network in which they live. Levi says, "We allowed them exclusivity in the third phase of the project, which is not being marketed outside at the moment. They got a good discount, and we gave them a package that companies don't usually give in terms of legal solutions, financing, apartment planning and design." According to Levi, the average price for a 5-room apartment in the project is about NIS 4 million, and mini-penthouse and penthouse apartments were sold for NIS 6.5-9.5 million."
Are they planning to immigrate to Israel?
Levi: "Most of them have not opened immigration files, but it seems that the frame of mind in the US is that America is in decline from its greatness, and it is better to prepare the next step. Most of them do not know if they will immigrate to Israel in the coming years, but they are preparing a place for their children and themselves. It is difficult to move large families with businesses, and this is a very well established community. But everyone sees themselves coming to live in Israel at some point."
Gideon Farshid, a member of the Mashhad community who bought an apartment in Kiryat Ono says, "We work in different ways to reach our goal and build a community in Israel. In my case, I have four sons-in-law who needed to receive my blessing to marry my daughters. I approved them only on condition that when I immigrate to Israel, they will come with me. They are waiting for me to move and are preparing their businesses and their future accordingly, so that they can come to Israel soon together with the grandchildren."
Farshid says that many of the other buyers are elderly, and think of coming to visit for periods of 4-5 months a year. "The young couples want to come to Israel, but there are financial difficulties. We are currently building a budget to support them for three years after immigrating. We want them to come to the apartments we bought in Kiryat Ono and strengthen the community center there."
Marina Dilamani, a real estate agent who organized the sales fair in Great Neck, Long Island, New York and is herself a member of the Mashhad Jewish community, tells "Globes," "Today, Jews feel less safe, so there are more who are interested in investing in Israel - whether for investment, for living in the future, or for shelter in the event of an emergency. I think that in the coming years there will be many waves of immigration to Israel. Many young people are dealing with anti-Semitism in colleges. They have a feeling that they are less welcome and it is difficult and it's better for them to live here."
Are there benefits for purchasing as a group?
Dilamani: "We are trying to produce the deal in the 'presale' phase before the project gets underway and before the bank steps in. The prices are significantly better, and the discount ranges between 5%-10% of market prices."
Beit Shemesh: Most of the project was sold to modern haredim
In Beit Shemesh as well, foreign residents have bought homes together. Rotshtein's Rotshtein Heights in Ramat Beit Shemesh has mainly been sold to US Jews who have come to Israel. Dror Ohev Zion, CEO and founder of Dara Marketing Real Estate, which is marketing the project, says that when sales began 18 months ago, almost all the apartments were sold to "Modern American haredim."
"We opened the first phase two months ago and we are currently closing sales of 25-30 apartments to a New Jersey community. The population is what is known as 'modern haredi', who also work and run businesses, while maintaining a cohesive and strong community. Most of them have the intention of coming to live in Israel, but occupancy (of the project) is more than three years away," he says.
Did they get a discount?
"In the second phase presale, they bought 4-room apartments at a price of NIS 2.5-2.8 million. The payment terms are 20/80 and some of them have terms of agreement, inin which payments are spread."
Jerusalem: "Communities from Central America and the US
Demand for Jerusalem never wanes among foreign residents. According to Kardan Real Estate, from the beginning of 2024, nearly 30 apartments have been sold in the company's Holyland project in the capital to two Jewish communities from abroad. Kardan's national sales manager Ariel Turgeman says, "The communities came as buyers groups from Central America and the US, and in addition, several individual apartments were also sold to a small group of friends from Europe."
The first group contacted the company about two months after the war began, through a member of one of the Jewish communities in Central America who lives in Israel. "He told us that he was looking for apartments for them for investment purposes and for future living, and that the war strengthened their desire to purchase," Turgeman says. "The aim is to keep the community united, so that if they immigrate, they immigrate together."
The group purchased four apartments for NIS 16 million, and in the last two months purchased six more apartments for about NIS 25 million. All the apartments purchased are large apartments with 4-6 rooms. "Some of the buyers came to Israel to see the project, and some sent their children or relatives who are in Israel. Some did not come at all and relied on the friend and the previous experience of the community members with the company," says Turgeman.
The second community, from the US, also arrived through one of its members who has already immigrated and knows the neighborhood. Turgeman says that nine families from the community bought apartments in the last six months, most of them in the last two months.
In addition, a project will be built in the Katamonim neighborhood in Jerusalem that will be designed for the Jewish-Syrian community in the US, according to developers Isracap Grand and Beit Yerushalmi. This is an urban renewal project in which 170 apartments will be demolished on Bar Yochai and Elmaliach Streets and replaced by 600 apartments in four towers. Isracap Grand partner Alberto Shemaria tells Globes, "The project has been adapted to the requirements and needs of the community from the planning stage."
The agreements for the purchase of the apartments is due to be signed after the holidays, so we will update the community members on what their requirements are regarding the size of the properties and their layout. "Due to the community's desire to settle in one project that is customized, it was reduced by about 100 apartments compared with what was approved in the masterplan. I don't know who intends to immigrate and who is just buying a property," says Shemaria.
Recently, a conference on the project was held in Deal, New Jersey, in which Ari Ajami from the Syrian community said, "We went to Israel with the aim of seeing sites where our community could build projects with prestigious apartments that would still be affordable. Israel is my homeland, even though I was born in Brooklyn, and all of us need to buy apartments in Israel, so that we will have another home."
Tel Aviv: Eight apartments bought by French dentists
Avrahami Group recently sold 12 apartments to a group of French dentists. Avrahami Group VP marketing and sales Yaffa Sadan says that serious interest has been created because of the rise of antisemitism in Europe. "The group, whose members come from Nice and Cannes, together bought eight apartments in one project in Tel Aviv, and another four apartments in Eilat," she says.
Ask whether the company gives a discount on such a group purchase, Sadan replies, "Of course there is a discount, but it depends on the project and sometimes it is a general discount for everyone. There are cases where as part of the benefits we furnish and design the apartment for them, including electrical appliances. The value of the benefits can reach 5%, and depends on the apartment and its price. When the apartments they buy are bigger, they buy not only for investment purposes but also to live there, and they are interested and ask about schools, synagogues and becoming part of the community."
Kiryat Gat: Joining the existing Jewish community
The American immigrant community in Carmei Gat in Kiryat Gat is continuing to expand. Y.H. Dimri VP marketing and sales Amir Cohen tells "Globes" that eight families bought apartments in the company's project in the neighborhood during the war. "They will join an existing community in Carmei Gat of national-religious families from the New York area," he says.
"It is important for foreign residents to join a community. They are less likely to purchase independently in an isolated place. The proximity of Carmei Gat to Beit Shemesh and Modi'in, which have large communities of American Jews, plays a role as well as the price levels. These are not the rich foreign residents that you imagine that can buy properties every day of the week, but young families for whom price is an important consideration. They were looking for apartments at a price of up to $600,000. Karmei Gat is affordable and relatively close to their relatives, which was a significant consideration," explains Cohen.
How did they find you?
Cohen: "At first, four buyers came, not as a group, but through an American broker who did the inspections for them and brought them to see the place in Israel. The prices were also the same as for a regular customer and not as a group of buyers. They bought in a project that is in an advanced stage and occupancy is already in March 2025, which is also the reason that there is really no special discount. The prices range from NIS 2-2.35 million and they purchased 4-5 room apartments."
Published by Globes, Israel business news - en.globes.co.il - on September 13, 2024.
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