Buying a Penthouse in Israel
Buying a Penthouse in Israel
For many American buyers, the dream Israeli home is a penthouse with a large terrace, open views and the sense of living above the city. Israeli penthouses come in many forms, from the top floor of a renovated walk-up in central Tel Aviv to a duplex crowning a new tower in Netanya or a spacious top apartment in a Jerusalem stone building. What they share is a set of issues specific to the top of a building: rights to the roof, terraces that must be waterproofed and permitted, exposure to the elements and a price that reflects rarity. This guide explains what to check.
What counts as a penthouse in Israel
In Israeli usage, a penthouse, often called a roof apartment, is the top apartment in a building, usually with a large private terrace on the roof or on a setback floor. Some are duplexes with internal stairs leading to a rooftop level. In new towers, developers often combine several top floors into a small number of premium units. In older buildings, a roof apartment may have been added later, sometimes with and sometimes without a proper permit.
Rights to the roof and terraces
The key legal question is what exactly you own. In a condominium, the roof is typically common property unless the condominium order attaches it, or part of it, to a specific apartment. A large terrace may therefore belong to your unit, or it may be shared property that you merely use. Your lawyer should examine the Land Registry records, the condominium order and the purchase agreement to confirm which areas are attached to the apartment and whether they appear as registered attachments.
Permits and legal construction
Pergolas, glass enclosures, jacuzzis and closed rooms on the terrace are popular additions, but many are built without permits. Unpermitted construction can lead to enforcement orders, fines and difficulties with financing or resale. Ask for the permit drawings and compare them with what exists. If additions were built without approval, factor in the cost and risk of legalizing or removing them.
Technical issues at the top
The top of a building takes the full force of sun, rain and wind. Before buying, have an engineer inspect the waterproofing, drainage, railings and the condition of any equipment installed on the roof, such as solar water heaters, air conditioning units and antennas. Ask who is responsible for maintaining the roof and for repairing leaks that affect apartments below.
Inspect waterproofing and past leak history
Check drainage capacity for heavy winter rain
Confirm access arrangements for shared rooftop equipment
Review wind exposure and railing safety
Views and what could block them
A penthouse view is a large part of its value, and it is not guaranteed. Check with the planning department and a planner whether any approved or proposed plans would allow taller buildings nearby. In cities with active urban renewal, such as Tel Aviv, Ramat Gan and Netanya, low buildings across the street may be replaced by towers in the future.
Penthouses in renewal projects
Owners of top-floor apartments in older buildings often play a special role in TAMA 38 or pinui-binui projects, since the new floors are typically built above them. Renewal agreements may compensate them differently, and the rights they hold on the roof can affect negotiations. If you are buying a top-floor apartment in an older building, ask whether a renewal project is being discussed and how it would treat your unit.
Financing, taxes and resale
Israeli banks finance penthouses like other apartments, but appraisals can be more complex because comparable sales are few. Purchase tax depends on your other Israeli holdings, so ask an Israeli tax advisor, and speak with a US CPA about reporting and currency transfers. On resale, penthouses appeal to a narrow but motivated pool of buyers. Well-maintained units with legal terraces and protected views tend to hold their appeal best.
Frequently asked questions
Does the roof terrace legally belong to the penthouse
Only if the condominium order or registration attaches it to the unit. Your lawyer should verify this before you sign.
Can I build a pergola on my terrace
Often yes, but it usually requires a permit or must meet specific conditions. Check with an architect before building.
Are penthouses harder to resell
The buyer pool is smaller, but demand for well-located penthouses with legal terraces and good views tends to be steady.
Who fixes leaks from my terrace into the apartment below
Responsibility depends on the condominium order and the source of the leak. Clarify maintenance obligations before buying.
Elkayam Group
Top floors and roof rights come up constantly in the urban renewal, TAMA 38 and pinui-binui work that Elkayam Group specializes in, alongside its development and combination deals. The group's industrial family roots span three generations, and it partners with backing companies and can offer guarantees when a deal calls for them. Buyers from America can review a penthouse with us in English, and our team also speaks Hebrew and French.
Share the penthouse you are considering and we will help you check what really comes with it.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv