Land for Sale in Jerusalem
Land for Sale in Jerusalem
If you are searching for land for sale in Jerusalem, start with the legal status of the plot rather than its price – in Israel that single fact decides what you can do with the land and what it is worth.
Official market data — Jerusalem (Israel CBS, 2026)
Average apartment price in Jerusalem: ₪3,089,000 (change vs. H1 2025: 0%)
National average: ₪2,392,000 in H1 2026 (+3.9% vs. H1 2025); the CBS housing price index for February–March 2026 was down 1.2% year on year
Average monthly rent in Jerusalem: ₪5,280 (CBS, Q1 2026)
Purchase tax for a foreign resident or investor: 8% up to ₪6,055,070 and 10% above; bank financing for non-residents is capped at 50% of the property value (up to 75% for an Israeli resident buying a single home)
Source: Israel Central Bureau of Statistics — average apartment prices for the first half of 2026 (published 15 September 2026), the housing price index (published 15 May 2026) and the Q1 2026 rent survey. These are city-wide averages; the actual price depends on the neighborhood, size, floor and condition. Before any decision we show you real transactions recorded with the Israel Tax Authority in the area you are considering.
Land in Israel is a specialised market with its own vocabulary – state land, private land, zoning and planning status – and this page covers what an overseas buyer must understand before looking at a single plot.
Jerusalem at a glance
Jerusalem is Israel's capital and largest city, spread over hills at roughly 800 metres above sea level, with a dry, cool climate and a municipal by-law that requires stone-clad facades – which gives even new buildings their distinctive look.
The city's housing market is shaped by its communities: religious and secular neighbourhoods sit side by side, and a large share of central apartments are owned by diaspora families from North America, France and the United Kingdom who visit for holidays and festivals.
Getting around:The light rail crosses the city from Pisgat Ze'ev to Mount Herzl, the high-speed railway reaches Ben Gurion Airport and Tel Aviv from Yitzhak Navon station in under an hour, and Highway 1 connects to the coast.
What you need to know about buying land in Jerusalem
Most land in Israel is owned by the state and administered by the Israel Land Authority (ILA), which grants long-term leases rather than freehold; a smaller share is privately owned and registered in the Land Registry (Tabu). Both can be bought by foreign residents, but the rights, the transfer process and the fees differ, and the ILA has its own rules for leases to non-residents.
Zoning –agricultural, residential, commercial or open space, set by the local master plan; changing it is a long public process
Planning status –whether a detailed plan and a building permit exist, and what the permitted density is
Registration –Tabu freehold, ILA lease, or unparcelled land held in shares (mushaa) with co-owners
Access and infrastructure –road access, water, electricity and sewage connections
Community rules –plots in moshavim and community settlements come with acceptance committees and use conditions
Land for sale in Jerusalem is rare and almost always sold with a planning opportunity attached – a plot with building rights in an established neighbourhood, an old house on private land that can be rebuilt, or a share in an urban-renewal project. Jerusalem's planning committees, conservation rules and the stone-facade by-law shape what can be built.
Neighbourhoods to know in Jerusalem
Before you compare individual listings, decide which part of Jerusalem suits you. The main areas are:
Rehavia, Talbieh and the city centre –garden neighbourhoods from the 1920s and 1930s, walking distance to the Old City, the Knesset and the Great Synagogue
German Colony, Baka and Old Katamon –Templer and Arab-style stone houses along Emek Refaim and Derech Beit Lechem, cafés and the First Station
Mamilla and the King David area –the luxury quarter between Jaffa Gate and the centre – David's Village, Mamilla Mall and hotel residences
Nachlaot and Mahane Yehuda –nineteenth-century courtyard neighbourhoods next to the market, popular with students and artists
Arnona, Talpiot and Malha –newer southern neighbourhoods with larger apartments and easier parking
Har Nof, Ramot and Ramat Eshkol –family neighbourhoods with strong Anglo and religious communities
Ein Kerem and the western hills –village houses, artists and the Hadassah medical centre
Housing stock and who buys in Jerusalem
What you will find on the market: historic stone houses in the German Colony, Baka and Nachlaot, 1970s ring-neighbourhood blocks with large family apartments, and a wave of new luxury projects and towers around the centre and the entrance to the city.
Who you will be competing with: religious and traditional families from the United States, the United Kingdom and France, diaspora buyers who want a home near the Old City for holidays, students at the Hebrew University and the yeshivot, and investors who rent to them.
Many central apartments trade between overseas owners and are marketed in English; the same apartment can look very different in price depending on whether it has an elevator, parking, a safe room and a stone-restored facade.
Costs and taxes to plan for
Purchase tax (mas rechisha) –progressive, filed with the Israel Tax Authority; non-residents and buyers of a second home pay higher brackets than Israeli first-home buyers, and rates change, so model this first
Legal fees –your lawyer's fee is customarily a small percentage of the price plus VAT, and on new-build purchases the developer's lawyer also charges a capped registration fee
Agent fee –customarily a percentage of the price plus VAT, paid by each side to its own agent
Registration and ILA fees –Land Registry fees, or ILA consent and lease fees on state land
Ongoing –arnona, building fees, insurance, and Israeli tax on rental income if you let the property
On exit –capital-gains tax (mas shevach) with exemptions and indexation, and possibly a betterment levy if planning rights were added
How Kobi Elkayam Real Estate helps
Kobi Elkayam Real Estate Ltd is part of the Elkayam Group, a Tel Aviv family business whose roots go back to 1945 and is now in its third generation. The group is active as a developer – in urban renewal, combination deals and complex transactions – and as a brokerage for international clients, working in English, French and Hebrew from its offices at 37 Rival Street, Tel Aviv.
Search and shortlisting in Jerusalem –agency, private and off-market sources, screened in person
Video and in-person viewings –timed to your visits to Israel
Negotiation –against verified transaction data, through your lawyer
Professional team –introductions to real-estate lawyers, tax advisers, mortgage brokers and appraisers who work with overseas clients
Developer projects and complex deals –access to the group's own projects and to combination and urban-renewal opportunities
After the purchase –management, letting and renovation partners so the property works while you are abroad
Can a foreigner buy land in Jerusalem?
Yes. Non-residents can buy freely in Israel and hold the property in their own name. You will need an Israeli lawyer, a tax file number for the purchase-tax filing and a way to transfer funds in shekels; a notarised power of attorney lets your lawyer sign if you cannot be in Israel.
Can a foreigner buy land in Israel?
Private (tabu) land can be bought by anyone. State land is leased by the Israel Land Authority, which has specific rules and consent requirements for leases to non-residents; in practice many overseas buyers hold ILA-leased homes and plots, but the structure must be checked by a lawyer before you commit.
Can I build on agricultural land?
Not without a change of zoning through the planning committees, which is a long public process with no guarantee. Buy agricultural land only if you understand it as agricultural, or as a long-term speculative position with specialist advice.
What is a "plot in a community settlement"?
A residential plot allocated by the ILA in a small community (yishuv kehilati) or moshav expansion, usually with an acceptance committee, a set price and an obligation to build within a fixed period. These are popular with families seeking a house with a garden in the Galilee, the Negev or the Jerusalem hills.
Related guides
Talk to us about a land purchase in Jerusalem.Call +972-53-658-4252, write to support@kobielkayamrealestateltd.com, orleave your detailsand a member of the team will get back to you in English, French or Hebrew.