Buying New Construction in Israel from Buffalo
Buying New Construction in Israel from Buffalo
Update: Israel's national TAMA 38 plan expired on 18 May 2026. New building-strengthening and renewal projects now go through alternative routes, such as municipal replacement plans and pinui-binui.
Much of Buffalo's housing stock is older, from grand homes on Delaware Avenue to classic doubles on the East and West Sides. For buyers used to maintaining older homes, a new Israeli apartment with modern systems, a safe room, and an elevator is attractive. In Israel, new apartments are frequently bought before the building is finished, with payments made in stages and protected by law. Urban renewal is also a major source of new homes. This guide explains how new construction works in Israel and what Buffalo buyers need to do to protect themselves.
From Buffalo Doubles to Israeli Towers
In Buffalo, new construction usually means a single-family home in a suburb. In Israel it often means a unit in a mid-rise or high-rise building. You choose the floor, orientation, and layout from plans, and a technical specification describes finishes and systems.
Reading the specification carefully, with translation where needed, is essential.
How Buyer Payments Are Protected
Israeli law requires sellers of new apartments to secure buyer payments, usually through bank guarantees or insurance. Your lawyer should confirm that each payment is protected before it is made.
Contracts commonly link payments to a construction cost index, which can change the amount over time. Ask for a clear explanation of how this applies.
Protection for every payment
Clear delivery date and delay remedies
Detailed technical specification
Index linkage explained
Urban Renewal in Israeli Cities
Pinui-binui and TAMA 38 are key sources of new housing. Pinui-binui replaces older buildings with new, larger ones, while TAMA 38 strengthens existing buildings and adds apartments.
These projects depend on resident agreements, planning approvals, and construction timelines. Buyers should verify the stage a project has reached before committing.
Where to Look for New Apartments
New construction is found in many areas, including Netanya, Ashdod, and Ashkelon on the coast, Haifa and the Krayot in the north, and new neighborhoods in Jerusalem and Beer Sheva. Tel Aviv and nearby cities have many renewal projects.
Think about whether you plan to live in the apartment, rent it, or hold it for family, as this affects the best location.
Delivery and Defects
When the building receives occupancy approval, the apartment is handed over. An independent engineer can inspect it and list defects for the seller to repair within legal periods.
If you are in Buffalo at that time, a representative with a power of attorney can receive the apartment on your behalf.
Keep a written list of defects and follow up until each item is resolved, since repairs are easier to secure soon after handover.
Finance and Tax
Mortgage options for foreign residents, purchase tax, and future sale taxes depend on your situation. Consult an Israeli tax advisor, a US CPA, and a mortgage advisor before signing.
Plan how you will transfer funds from the United States for each payment stage, keeping records of the source of funds for your Israeli bank.
Questions Buffalo Buyers Should Ask the Seller
Before signing, ask who the construction company is, what stage the building permit has reached, and how the seller handles buyer requests for changes. Ask how parking spaces and storage rooms are allocated, and what the future building maintenance arrangements will be.
Your lawyer should compare the answers with the contract and specification, so that promises made in conversation are reflected in writing.
Frequently asked questions
Are payments for new apartments protected
Yes, Israeli law requires sellers to protect buyer payments. Your lawyer confirms each protection before payment.
What if the building is delayed
The contract should define the delivery date and the remedies for delay. Your lawyer can explain your rights.
Can I buy in an urban renewal project
Yes, but projects vary widely in progress and risk. Verify the planning and approval stage before buying.
Who inspects the apartment at handover
An independent engineer can inspect the apartment and document defects for the seller to fix.
Elkayam Group
Operating under the name Elkayam Group, Kobi Elkayam Real Estate Ltd is based on Rival Street in Tel Aviv. Our team speaks Hebrew, English, and French.
Interested in a new Israeli apartment Speak with Elkayam Group from Buffalo.
+972-53-658-4252 · support@kobielkayamrealestateltd.com