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Best Real Estate in Israel: Fees, Licensing and Finding the Right Agent

Best Real Estate in Israel

Israel licenses real estate brokers under the Real Estate Brokers Law of 1996, and a broker can only collect a fee with a signed brokerage agreement. Nationwide, the market norm is up to 2% plus VAT on a purchase and one month's rent plus VAT on a lease. This guide explains how agents work here, how overseas clients should choose one and what a developer-broker like Kobi Elkayam Real Estate does differently.

Official market data — Israel (CBS, 2026)

National average: ₪2,392,000 in H1 2026 (+3.9% vs. H1 2025); the CBS housing price index for February–March 2026 was down 1.2% year on year
Purchase tax for a foreign resident or investor: 8% up to ₪6,055,070 and 10% above; bank financing for non-residents is capped at 50% of the property value (up to 75% for an Israeli resident buying a single home)

Source: Israel Central Bureau of Statistics — average apartment prices for the first half of 2026 (published 15 September 2026), the housing price index (published 15 May 2026) and the Q1 2026 rent survey. These are city-wide averages; the actual price depends on the neighborhood, size, floor and condition. Before any decision we show you real transactions recorded with the Israel Tax Authority in the area you are considering.

Israel: the market in context

Israel packs about ten million people into a coastal strip, a hill country and a desert, and the shortage of buildable land near jobs is the single fact that explains the market: prices roughly doubled over the past decade and demand from young families, tech workers, immigrants and overseas buyers keeps pressure on supply. Most of the land is owned by the state and leased long-term through the Israel Land Authority, which is why most apartments are bought as long leases that behave exactly like freehold in practice.

Ben Gurion Airport sits 20 minutes from Tel Aviv, Israel Railways links the coast to Jerusalem in 30 minutes and the Tel Aviv light rail is expanding across Gush Dan. English is spoken everywhere in business, and every major city has an established English-speaking community.

What drives demand here:

Chronic housing shortage
Steady population growth
A technology economy that keeps attracting global capital
Immigration waves that lift demand in specific cities
Property rights that protect foreign owners exactly like locals

Who buys in Israel: Jewish families from North America, France and the UK buying a second home or preparing for Aliyah, tech founders relocating, and yield investors looking for hard-currency diversification.

Areas and price bands in Israel

[Tel Aviv and Gush Dan](/realestatepages/tel-aviv-apartments-prices-neighborhoods-and-opportunities)— the economic core; highest prices, deepest rental demand
[Jerusalem](/realestatepages/apartments-in-jerusalem-market-guide-for-overseas-buyers-2026)— the capital; strong overseas and religious-community demand
[The Sharon coast (Herzliya, Ra'anana, Netanya)](/realestatepages/herzliya-real-estate-complete-guide-for-international-investors)— villas, beaches and English-speaking communities
[Haifa and the north](/realestatepages/haifa-real-estate-complete-guide-for-international-investors)— value pricing, universities, the Galilee and Golan for land and lifestyle
[The south (Ashdod, Ashkelon, Beer Sheva, Eilat)](/realestatepages/beer-sheva-real-estate-market-guide-for-overseas-buyers-2026)— entry prices and higher yields

How brokerage works in Israel

Brokerage fees are regulated by the Real Estate Brokers Law: a licensed broker may charge only with a signed brokerage agreement, and the market norm is up to 2% plus VAT of the price on a purchase and one month's rent plus VAT on a rental. Agents are licensed by the Registrar of Real Estate Brokers after an exam, most work both sides of a deal, and exclusivity agreements are common for sellers but limited by law in duration.

Choosing an agent as an overseas client

Check the license number on the Ministry of Justice registry and ask for the brokerage agreement in a language you read before any viewing.
Ask for registered transaction evidence for the areas you are considering in Israel, not just asking prices.
Confirm who the agent represents in the deal and how the fee is split if both sides pay.
Prefer a team that coordinates the lawyer, mortgage adviser and, if you are buying to let, the property manager.
For remote buyers, insist on video viewings, written condition reports and a power-of-attorney workflow with the lawyer.

What a developer-broker does differently

Kobi Elkayam Real Estate Ltd is a licensed brokerage that is also an active developer in combination and urban-renewal deals, part of a group with roots in Tel Aviv since 1945. That means access to projects before they are marketed, a developer's reading of building rights and planning risk, and a team working in Hebrew, English and French from offices at Rival 37, Tel Aviv.

Advantages

Property rights for foreigners identical to locals
Two decades of consistent appreciation
Deep rental demand in every major city
English widely spoken in business and law

Points to consider

Purchase tax of 8%–10% for non-residents (Source: Israel Tax Authority, 2026)
High entry prices in the center
Bureaucracy and Hebrew-language paperwork
Interest rates that make financing expensive

Our role in your purchase

Kobi Elkayam Real Estate Ltd is a Tel Aviv developer and licensed brokerage, part of the Elkayam Group, a family business now in its third generation. We guide international clients through every stage of buying in Israel: search and off-market sourcing, price analysis against registered transactions, negotiation, coordination with English-speaking lawyers and mortgage advisers, and management after the keys. The group's own projects include Kiryati 10 in Tel Aviv, the H/500 compound in Holon, Tel Nofim beside Sde Dov, Alhadif 44 in Tiberias and the Hasan Arafa railway compound. We work in Hebrew, English and French.

How much do real estate agents charge in Israel?

Up to 2% plus 18% VAT of the purchase price, usually paid by each side to its own broker, and one month's rent plus VAT on rentals. Fees are only enforceable under a signed brokerage agreement.

Is there an MLS in Israel?

No. Listings are not shared between brokers, so the same apartment may appear with several agencies at different prices. Working with one team that also searches off-market is the practical answer.

How do I verify an agent's license?

The Registrar of Real Estate Brokers at the Ministry of Justice publishes a searchable list of licensed brokers; ask for the license number before signing anything.

Do agents in Israel represent the buyer or the seller?

Often both, which is legal if disclosed. Ask directly whom the agent represents and how the fee is split.

What does Kobi Elkayam Real Estate charge?

Standard brokerage fees under a signed agreement, with no charge for the initial consultation, the market analysis or the video viewings we do for clients abroad.

Talk to us about IsraelPersonal consultation in English or French: +972-53-658-4252 · leave your details on this page and we will get back to you within one business day.