Buying New Construction in Israel from Phoenix
Buying New Construction in Israel from Phoenix
Much of the Phoenix area has been built in recent decades, and many buyers in Gilbert, Queen Creek or North Scottsdale have purchased new homes from builders in master-planned communities. Israel's new construction market is organized differently. Homes are usually apartments in multi-story buildings, sold off-plan, with payments tied to construction stages and legal protections for buyers. Much of the new supply in established cities comes from urban renewal, while new neighborhoods rise on the edges of growing cities such as Beersheba, Ashdod and Netanya. This guide explains what Phoenix buyers should check before committing to a new apartment in Israel.
How New Projects Are Sold
Israeli developers often begin selling before construction starts or while it is underway. Buyers sign a contract with attached plans and a technical specification, then pay in stages.
Unlike a Phoenix builder who may deliver a house within a relatively short period, Israeli projects usually take longer because they involve multi-story buildings and detailed approvals.
Protection for Your Payments
Israeli law requires developers to secure buyers' payments on new apartments, commonly through bank guarantees. Every payment should be matched by the appropriate security.
Your lawyer should confirm the project bank, the payment account and the guarantee before any money is transferred. Keep a file of every guarantee and receipt, since you will need them if questions arise later.
What to Review in the Contract
Read the contract and specification with your lawyer, focusing on these points.
Apartment size, balcony and storage as shown in the plans
Standard finishes and upgrade procedures
Parking and storage allocations
Delivery timeline and delay provisions
Warranty periods and defect procedures
Payment linkage to construction indices
Urban Renewal and New Neighborhoods
In established cities, TAMA 38 and pinui-binui projects add new apartments in mature neighborhoods with existing services. In growing cities, new neighborhoods offer larger apartments and parks, though shops and schools may take time to open.
Consider which suits your plans, and ask your lawyer about the approval status and timeline of any project. Visiting the surrounding streets gives a better sense of daily life than the sales office alone.
Following the Project from Arizona
Israel is typically nine or ten hours ahead of Phoenix, depending on the season. Ask the developer for regular written updates and photos, and plan visits at key stages if possible.
Before handover, an independent engineer should inspect the apartment and prepare a list of defects for the developer to repair.
Currency and Taxes
Payments may stretch over the construction period, so exchange rate movements between the dollar and the shekel matter. Plan funding in advance.
Purchase tax, VAT included in the price and US reporting obligations should be reviewed with an Israeli tax advisor and a US CPA before signing.
Choosing Features for Israeli Life
New Israeli apartments typically include a mamad, elevators and parking, which are valuable features. Phoenix buyers who value outdoor living often look for large balconies or garden apartments on the ground floor.
Also consider orientation and shading, since sun exposure affects comfort in Israeli summers much as it does in the Valley. Ask which direction the balconies face, whether shutters are included and how the apartment will feel on a summer afternoon.
Frequently asked questions
Why do Israeli new projects take longer than Phoenix new builds
Israeli projects involve multi-story buildings and detailed planning and permitting, which usually take longer than single-family homes.
How are my payments protected
Israeli law requires developers to secure payments, usually through bank guarantees. Your lawyer should verify each one.
Can I get a garden or large balcony in a new apartment
Many projects include garden apartments or large balconies. Ask about them early, as they are often in demand.
Who inspects the apartment before handover
An independent engineer can inspect on your behalf and document defects for the developer.
Elkayam Group
With roots in a family business founded in 1945 and three generations of experience, Elkayam Group operates as Kobi Elkayam Real Estate Ltd from Rival Street 37 in Tel Aviv. The company is active in development, urban renewal, pinui-binui and TAMA 38 projects as well as combination and complex deals, working with backing companies and partners and able to provide guarantees where a transaction calls for them. Families calling from Phoenix can speak with the team in English, and it also works in Hebrew and French while coordinating the professionals involved.
Interested in new construction in Israel from Phoenix. Speak with us about development and urban renewal.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv