Buying New Construction in Israel from New Jersey
Buying New Construction in Israel from New Jersey
Many New Jersey buyers are drawn to new construction in Israel. A new apartment usually offers a protected room, an elevator, parking and modern systems, and it avoids the renovations that older apartments often need. The catch is that many new apartments are sold before they are built, which is known in Israel as buying on paper. You will be paying installments for a property you cannot yet walk through, often while living in Bergen County or Essex County. This guide explains the protections available, the questions to ask and how to follow a project from a distance.
Why New Construction Appeals to New Jersey Families
Families used to a house in Teaneck or Livingston often find older Israeli apartments small and short on storage. Newer buildings in cities such as Modiin, Beit Shemesh, Raanana, Netanya and the renewing neighborhoods of Jerusalem offer larger layouts, more light and easier accessibility.
Urban renewal projects, including TAMA 38 and pinui-binui, also produce new apartments in established neighborhoods, which can be attractive to buyers who want both a new building and an existing community.
Protections When You Buy on Paper
Israel has a sale law for apartments that requires developers to secure buyer payments, commonly through a bank guarantee or insurance for each payment. Your lawyer should confirm that every installment is covered before you send it.
The contract should also set out the technical specification, the expected delivery window and what happens if delivery is late. Read these sections carefully with your lawyer.
Questions to Ask Before Signing
Does the project have a valid building permit, or only an approved plan
How is each payment secured under the sale law
How are payments linked to the construction input index
What exactly is included in the specification and what counts as an upgrade
What is the process and deadline for requesting changes to the layout
How will defects be handled after delivery
Following the Project from New Jersey
Construction can take time, and there will be decisions along the way about finishes, kitchens and fixtures. Because Israel is usually seven hours ahead, you can schedule video calls with the developer customer service team in your morning.
Many buyers appoint a local representative or engineer to visit the site at key stages and attend the final handover inspection. That inspection is where defects should be documented.
Financing a New Build
Payments are usually spread across the construction period according to the contract schedule. If you are using an Israeli mortgage, coordinate with the bank early, since approval and drawdown are tied to construction progress. Currency conversion timing from dollars also matters over a long schedule.
Talk with an Israeli mortgage advisor, an Israeli tax advisor and a US CPA before committing.
Where New Jersey Buyers Look for New Buildings
Popular areas include the newer neighborhoods of Modiin, Ramat Beit Shemesh, Raanana, Netanya, Herzliya and Jerusalem, as well as urban renewal areas in Tel Aviv, Givatayim and Ramat Gan. Each area has a different pace of building and a different community feel.
Frequently asked questions
Is buying off plan safe
It can be done safely when the sale law protections are in place and your own lawyer reviews the contract and payment security. Delays can still happen, so plan for them.
Can I change the layout of a new apartment
Developers often allow some changes within a set window and at additional cost. Ask for the change policy in writing before you sign.
Who inspects the apartment at handover
Many buyers hire an independent engineer to inspect and document defects at delivery, especially when they cannot attend from New Jersey.
Are urban renewal apartments a good option
They can be. TAMA 38 and pinui-binui projects create new apartments in established neighborhoods, but they have their own timelines and risks to review.
Elkayam Group
New construction is at the core of what Elkayam Group does. From its office on Rival Street 37 in Tel Aviv, Kobi Elkayam Real Estate Ltd works on development, urban renewal, TAMA 38, pinui-binui and combination deals together with backing companies and partners, and can provide guarantees. The family roots date back to 1945 across three generations, and the team works in English, Hebrew and French.
Considering a new-build apartment in Israel. Let our development team review the options with you.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv