Buying New Construction in Israel from Scottsdale
Buying New Construction in Israel from Scottsdale
The Phoenix area is known for new construction, from master-planned communities in North Scottsdale to growing suburbs across the Valley. Buyers there are used to choosing a lot, a floor plan, and upgrades from a builder. In Israel, new construction usually means apartments in mid-rise or high-rise buildings, often bought before completion, with payments made in stages and protected by law. Urban renewal is another important source of new homes. This guide explains how new construction works in Israel and how Scottsdale buyers can protect their interests.
From Master-Planned Communities to Apartment Towers
In Scottsdale you might visit a model home and choose upgrades. In Israel you choose an apartment from architectural plans, and a technical specification lists finishes and systems. Some sellers offer a sample apartment or showroom.
Read a full translation of the specification before signing, since it forms part of the contract and defines what you will actually receive.
How Payments Are Protected
Israeli law requires sellers of new apartments to protect buyer payments, typically with bank guarantees or insurance. Your lawyer should confirm each protection before you pay.
Payments are often linked to a construction cost index, which can adjust amounts over time. Ask for a clear explanation.
Guarantee or insurance for each payment
Delivery date and delay remedies
Detailed technical specification
Index linkage explained
Urban Renewal in Israeli Cities
Pinui-binui replaces older buildings with new ones, while TAMA 38 strengthens existing buildings and adds apartments. Both are important sources of new housing, especially in central cities.
These projects rely on resident agreements and planning approvals, so verify a project's stage before committing.
Where to Find New Apartments
New construction is found in Tel Aviv, Ramat Gan, Herzliya, Netanya, Ashdod, and Haifa, as well as new neighborhoods in Jerusalem and Beer Sheva. Some buyers who love the desert look at new neighborhoods in Beer Sheva or Eilat.
Consider your intended use and future infrastructure when choosing a location, including planned rail lines and schools.
Handover and Inspection
Delivery takes place once the building has its occupancy approval. At that stage an independent engineer can walk through the apartment and prepare a defects report, and the seller must carry out repairs within the periods the law sets.
If you are in Arizona, a representative with a power of attorney can handle the handover.
Keep a written list of defects and the seller's responses, and follow up promptly, since repairs are easiest to secure soon after delivery.
Financing and Tax
Whether you can finance in Israel as a foreign resident, and how purchase and future sale taxes apply, depends on your situation. Speak with an Israeli tax advisor, a US CPA, and a mortgage advisor before signing anything.
Plan how you will transfer funds for each payment stage, and keep source-of-funds documentation ready.
Climate-Smart Features to Ask About
Scottsdale buyers understand heat. Ask about window glazing, insulation, shading, and air conditioning infrastructure, as well as solar water heating, which is common on Israeli rooftops. These features affect comfort and running costs for years.
Following Construction from Arizona
Construction can take a considerable time, and buyers abroad naturally want updates. Ask the seller how progress will be reported, whether site visits can be arranged during your trips, and who your contact will be for questions and changes.
A local engineer or representative can visit at key stages and report back, helping Scottsdale buyers raise concerns early rather than discovering them at handover.
Frequently asked questions
Are off-plan payments protected in Israel
Yes, Israeli law requires sellers to protect buyer payments on new apartments. Your lawyer confirms each protection.
Can I customize my new apartment
Many sellers allow some changes to finishes or layout. Document all changes and costs in writing.
What is pinui-binui
Pinui-binui is an urban renewal process in which older buildings are demolished and replaced with new ones.
Do I need to be present at handover
No, a representative with a power of attorney and an engineer can receive the apartment for you.
Elkayam Group
Operating as Elkayam Group, Kobi Elkayam Real Estate Ltd is based on Rival Street in Tel Aviv. The family's roots date to 1945, and three generations have gained experience in development, urban renewal, pinui-binui, TAMA 38, and combination and complex deals, working with backing companies and partners that can provide guarantees. The team works in Hebrew, English, and French.
Considering new construction in Israel Talk to Elkayam Group from Scottsdale.
+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv