Buying New Construction in Israel from Chicago
Buying New Construction in Israel from Chicago
Chicago buyers are used to new construction in the suburbs or new condo towers downtown and in the West Loop. In Israel, new apartments are often sold on paper, before construction is complete, with payments spread over the building period and delivery at the end. The protections come from Israeli sale law and a carefully negotiated contract. This guide explains how the process works, what to check before signing and how to follow construction from the Midwest when Israel is usually eight hours ahead.
Why New Buildings Attract Chicago Buyers
For families used to suburban Chicago homes, new Israeli apartments offer larger layouts, parking, storage rooms, elevators and a protected room. They also tend to have better insulation, which matters in Jerusalem winters. New neighborhoods in Modiin, Beit Shemesh, Raanana, Netanya and Jerusalem, as well as urban renewal areas in Tel Aviv and Ramat Gan, are common choices.
North Shore families who are used to detached homes sometimes look for garden apartments or penthouses in new buildings, which offer outdoor space closer to what they know.
West Rogers Park families often focus on new buildings near established synagogues, where a sukkah balcony and a Shabbat elevator are part of the specification.
How Your Payments Are Protected
Israeli sale law requires developers to secure payments from buyers, commonly by bank guarantee or insurance. Your lawyer should confirm the security for each installment and that the payment goes only to the designated project account. Keep copies of every guarantee.
Questions to Ask the Developer
Ask for the answers in writing and have your lawyer compare them with the contract and appendices.
Is there a building permit or only an approved plan
What is included in the technical specification
How are payments linked to the construction input index
What changes can be made and by when
What happens if delivery is delayed
How are defects handled after handover
Urban Renewal Options
TAMA 38 and pinui-binui projects add or replace apartments in older neighborhoods. They can offer a new apartment in an established area close to transport and services. They also depend on approvals and resident agreements, so their timelines can change. Your lawyer should review the project status carefully.
Following Construction from Chicago
Set up regular video calls with the developer customer service team in your morning, which is the Israeli afternoon. Hire an Israeli engineer to visit the site at key stages and to inspect the apartment at handover. Plan a personal visit when you choose finishes and another near delivery if you can.
Customer service teams are used to overseas buyers, but make sure every change request and confirmation is sent in writing and saved.
Finance and Advice
If you will use an Israeli mortgage, involve an advisor early because bank financing is linked to construction progress. Plan dollar to shekel conversions over the payment schedule. Speak with an Israeli tax advisor about purchase tax and with a US CPA about reporting.
Keep a single shared folder with the contract, specification, guarantees and receipts, so you and your representatives always work from the same documents.
Frequently asked questions
What does buying on paper mean
It means buying an apartment before it is built, based on plans and a specification, with payments made during construction.
Are new buildings better insulated
Newer buildings generally meet more recent standards, but check the specification and ask about insulation and heating.
Can a representative inspect the apartment for me
Yes. Many buyers appoint an engineer to inspect and record defects at handover.
Can I change the layout
Developers often allow some changes within a deadline and at extra cost. Get the policy in writing.
Elkayam Group
Development and urban renewal are central to Elkayam Group. Kobi Elkayam Real Estate Ltd, at Rival Street 37 in Tel Aviv, works on development, TAMA 38, pinui-binui and combination deals with backing companies and partners and can provide guarantees. The family background goes back to 1945 across three generations, and the team works in English, Hebrew and French.
Thinking about a new apartment in Israel. Speak with our development team from Chicago.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv